Selecting Stocks with Seven Down Days and Prior-Day Limit-Up List Activity

Summary

This document presents an equity screening rule combining turnover, recent price declines, and prior-day appearance on China’s Dragon and Tiger List. It selects stocks with turnover between 3% and 12%, seven consecutive declining sessions, and a listing event on the previous day. The stated rationale is to find stocks that have fallen persistently but also show unusual market attention, making them candidates for further analysis.

The page supplies formula and Python-style examples for implementing the screen and suggests adding valuation measures or technical indicators such as RSI, MACD, and moving averages. It cautions that the rule ignores company fundamentals and that short-lived market events may not indicate a durable trend. It offers no empirical results or validation, and its sample code’s rolling comparison may not precisely implement seven consecutive day-over-day declines, so the logic should be checked before use.

Key ideas

• The screen combines turnover between 3% and 12% with seven consecutive declining sessions.
• It also requires the stock to have entered the Dragon and Tiger List on the previous day.
• The proposed interpretation is that persistent weakness plus unusual attention may identify candidates for further research.
• The document recommends adding fundamentals and other technical measures as possible filters.
• It warns that the rule omits fundamentals and provides no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.