Excellent screen, @musselmant . It only has 2 steps, focused just on price behavior and shares outstanding. No value or growth factors whatsoever, yet it beat every single SI Pro screen in the regular rankings.
The first step is based on the type of stage analysis used by trend followers and US investing champions like Mark Minervini. They look for stocks in Stage 2, which have already had a significant upward move within the past 6 months, but which have leveled off (consolidated), and are trading closer to their 50dma over the past few weeks. These are ideal situations, they have found, for another thrust upward. (They also set stop losses to limit their losses.) The final step is to find stocks with high liquidity within this group.
Let’s call this screen Liquid Consolidators. Here are the results over the past 15 years.
| 2009-2023 | Liquid consolidators | S&P 500 |
|---|---|---|
| CAGR | 20.8% | 14.0% |
| LDDD3 | 9.9 | 6.1 |
| MDD | -44% | -34% |
I also like that the universe of stocks starts with the S&P 500, so these are all large cap, liquid companies. I’ve subscribed to SI Pro to track the picks. (I now have subscriptions to Seeking Alpha. Portfolio123, Whale Wisdom and SI Pro, lol.)