Catching Breakout Stocks: Combining J Law's Stage 2 Screening with the Daily Summary List

Meet J Law: From Hong Kong Teacher to Record-Breaking Trader

If you follow the US stock trading circle in Asia, you've definitely heard of J Law. This self-taught investor from Hong Kong won the US Investing Championship for two consecutive years—becoming the first Hong Kong trader in history to achieve this honor. He set a world record of 353.9% annual return in the million-dollar real-money division, shocking the global trading community.

With over 240k YouTube subscribers on his free Cantonese investment education channel, J Law has built one of the largest retail trading communities in Asia. His methodology is simple: screen daily, train your eyes, and let the charts do the talking.

In a recent video, J Law detailed his Stage 2 Stock Selection Method using the TradingView screener. This method is simple, repeatable, and designed to discover stocks right before they break out.

Here is the core logic of this method—and how you can utilize our extracted Daily Summary list to make this stock picking process even more precise and powerful.

J Law's Stage 2 Screening Method

The "Stage 2" concept comes from Stan Weinstein's stage analysis: identifying stocks in an established uptrend, trading above key moving averages, with momentum support. J Law's screener is designed exactly to find these stocks.

The 5 Core Filters

Set the following conditions in the TradingView stock screener. The goal is to filter down to 100-200 stocks—a manageable list of strong candidates:

#	Filter	Setting	Why It Matters
1	Price > 200MA	Price above 200-day Simple Moving Average	Confirms the stock is in a long-term uptrend. Below the 200MA is not Stage 2.
2	Market Cap > $2B	Minimum $2B market capitalization	Filters out high-risk micro/small caps. Institutional money flows to larger caps.
3	Monthly Volume > $900M	Approx. $30M daily average volume	Ensures tight bid-ask spreads and confirms institutional participation. Illiquid stocks will trap you.
4	Beta ≧ 1	Beta value of 1.0 or higher	The stock moves at least in sync with the broader market—or stronger. You want relative strength, not laggards.
5	Save as "Stage 2"	Save the preset	One-click loading every morning. Consistency is your edge.

Why Screen Every Day?

J Law emphasizes three major benefits of running the screen every trading day:

1. Gauge Market Sentiment at a Glance

The number of stocks passing your Stage 2 screen is a signal in itself:

200+ passing → Broad market strength, bullish environment
Under 100 passing → Market is narrowing, stay cautious
List shrinking rapidly → Risk-off mode, tighten stop losses

You don't need sentiment indicators. The screener count is the indicator.

2. Train Chart Sensitivity

When you look at 100-200 charts every day, your eyes learn to instantly recognize the traits of a big winner right before a surge—tight consolidations, volume contraction before breakouts, and cup-and-handle patterns. There are no shortcuts here. It's a capability built through repetition.

3. Discover Leading Sectors Early

New market leaders appear in the screener long before they make the news. J Law uses FSLR (First Solar) as an example—it showed up in his Stage 2 scan before the solar sector became a major market theme.

Using the Daily Summary List with Stage 2 to Accelerate Screening

Here is the key. Every day, our system tracks and extracts the most explosive institutional options unusual activities, organizing them into a "Daily Summary" list.

Instead of aimlessly applying technical screens across thousands of stocks in the market, you can directly use this "Daily Summary" list and apply J Law's Stage 2 screening method as a secondary filter. This is not cross-referencing two independent stock lists, but a powerful funnel that perfectly combines the movement of smart money (capital flow) with J Law's trend filter (technical analysis).

How It Works

Get the Daily Summary List — Obtain the extracted ticker symbols of high-quality unusual options activities daily.
Import to TradingView Watchlist — Paste these tickers directly into your TradingView watchlist.
Apply Stage 2 Filters — For this specific list, check if they meet J Law's 5 core filters (e.g., Is the price above the 200MA? Is there enough liquidity and a strong Beta?).
Eliminate Weak Stocks — If a stock on the list has institutional buying but its technicals have broken key moving averages or it's in a downtrend, skip it decisively.

This filtering mechanism helps you effectively avoid landmines. Looking solely at options flow, you might buy a stock in a downtrend where institutions are just hedging; while looking solely at technical screens, a chart might look good but lack the upcoming capital catalyst to break out. By looking at the money flow first (Daily Summary), then filtering for the trend (Stage 2), you can precisely lock onto perfect targets that possess "Trend + Catalyst + Institutional Conviction" simultaneously.

Example Workflow

Morning Routine (Under 5 minutes):

1. Open our Daily Summary Report
   → e.g., spotted 200 signals today

2. Paste these 200 tickers into your TradingView Watchlist

3. Check them one by one against Stage 2 conditions:
   → NVDA: A+ sweep, ASK side
      ✅ Above 200MA, $3.4T Market Cap, Beta 1.6 — Stage 2 Confirmed!
   → FSLR: A signal, ASK side
      ✅ Above 200MA, $22B Market Cap, Beta 1.3 — Stage 2 Confirmed!
   → SMCI: A+ sweep, ASK side
      ❌ Price has fallen below 200MA — Fails Stage 2 conditions, skip immediately.

4. Final filtered list identifies NVDA and FSLR
   → Deep dive into the chart patterns for these two stocks (e.g., cup and handle, tight consolidation zones)
   → Apply your own risk-management discipline to determine entry strategy and position sizing.

In less than 5 minutes, you've completed the process of narrowing down from massive data sets to precise targets, and every stock selected is backed by both technical strength confirmation and real institutional capital flow.

Download the List and Take Action

Step 1: Get the Daily Summary

Review the options money flow summary list extracted for you daily.

Step 2: Create a TradingView Watchlist

Create a dedicated watchlist in TradingView and import the tickers from the summary list.

Step 3: Chart Review & Filtering

Apply your saved "Stage 2" preset conditions against the list and ask yourself three questions:

Is the price firmly standing above the 200-day moving average?
Has the stock formed a recognizable bullish pattern (base consolidation, breakout, flag)?
Does the options flow direction align with the chart's breakout direction? (Large ASK-side sweeps = Bullish conviction)

Why This Filtering Funnel is So Powerful

The best trades happen when multiple independent signals converge. A stock in a Stage 2 uptrend that is simultaneously seeing a massive influx of institutional-grade options orders means that technical analysts and quantitative funds have reached a consensus.

Start optimizing your workflow today:

Watch J Law's video for details on the Stage 2 screening method — Watch on YouTube
Set up the 5 core filters in TradingView and save as a preset.
Get the extracted summary list daily and use this filtering funnel as the primary defense for your investment decisions.

J Law built his championship track record through disciplined daily screening. Treat the extracted "Daily Summary" list as the source spring of your screening, combined with powerful technical filtering, and your chart-reading efficiency and win rate will experience a substantial leap.