🖥️ Technical Screen: Internal Rotation

Research Notes April 2026 > https://www.unum.capital/post/rapril2026

Trade Local & Global Financial Markets with Unum Capital.

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Disclosure: The graphic below has been generated using an A.I Tool based on the analyst's proprietary data:

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What is a Technical Screen?

In trading and technical analysis, a technical screen (or "screener") is a systematic process used to filter a vast universe of securities—such as the 100+ liquid names on the JSE or the thousands on the NYSE—down to a manageable shortlist that meets specific, predefined criteria.

Rather than analyzing every chart manually, a screen acts as a quantitative "funnel" to identify setups where the odds are mathematically skewed in your favor.

Why Professionals Use Screens

For an investment professional, a screen is less about "finding a tip" and more about process efficiency and bias reduction:

• Scalability: It allows an analyst to monitor hundreds of shares across multiple timeframes (Daily, Weekly, Monthly) simultaneously.

• Objectivity: It removes emotional attachment to specific "story stocks" and focuses strictly on price action and momentum profiles.

• Early Detection: It identifies sector rotations or "alpha flows" before they become obvious to the broader market.

The Goal: A technical screen doesn't tell you what to buy; it tells you what is worth your time to investigate today. It turns a sea of data into a high-probability "watchlist."

Types of Technical Screens

Rotation: Absolute & Relative

Trend & Phase Scans

• Leading Phase: Strong across all timeframes.

• Lagging Phase: Weak across all timeframes.

• Waking Up / Turnaround: Short-term strength appearing in a long-term downtrend.

• Deteriorating: Short-term weakness appearing in a long-term uptrend.

Momentum & Velocity

• Power Trend: Extreme bullish momentum pushing a strong trend higher.

• Hyper Momentum: Parabolic, highly volatile upside.

• Violent Breakout: Explosive short-term push reversing a weak long-term trend.

• Momentum Squeeze: Timeframe convergence (coiling) usually preceding an explosive price move.

Over-extended & Extremes

• Extreme Overbought: Euphoria across the board.

• Extreme Oversold: Severe panic selling across the board.

• Overbought Warning in Bear Trend: Violent counter-trend rally ripe for short-selling.

• Deep Dip in Bull Trend: Sharp, over-extended pullback in a primary uptrend.

• Capitulation: Total institutional abandonment.

Volatility & Accumulation

• Steady Accumulation: High-quality, low-drama buying.

• Low Volatility Compounders: Slow, steady, highly predictable uptrends.

• High Volatility Momentum: Strong trend with wild daily swings.

• High-Vol Laggards: Dangerous wealth-destroyers with massive daily swings.

• Dead Money: Trapped in a tight, directionless neutral zone.

Market Structure & Divergences

• Perfect Bull Alignment: Textbook sequential leadership (Short-term leads medium-term, which leads long-term).

• Perfect Bear Alignment: Textbook sequential breakdown (Short-term leads the decline, dragging down medium and long-term trends).

• Bullish Divergence: Shorter timeframes dragging a dead long-term trend higher.

• Bearish Divergence: Shorter timeframes breaking down while the long-term trend still looks great.

• Stealth Bull: Creeping accumulation while the long-term chart still looks bad.

• Stealth Bear: Creeping distribution while the long-term chart still looks good.

• MT Turnaround: Medium-term momentum just crossing out of weakness, pulled by short-term strength.

• MT Breakdown: Medium-term momentum just dropping out of strength, dragged by short-term weakness.

Transitions & Pullbacks

• Bull Market Correction: Healthy pullback into weak territory within a strong primary trend.

• Bear Market Rally: Sharp bounce into strong territory within a primary downtrend.

• Bullish Stall: Short-term momentum flatlining inside a strong trend.

• Base Building: Bleeding has stopped, chopping sideways at the bottom.

Lester Davids

Senior Investment Analyst: Unum Capital