Best stocks to short

Screening Filters & Rationale

1. Short Ratio > 30%:

   • Purpose: Identify stocks with high short interest, indicating bearish sentiment or potential overvaluation.
   • Rationale: High short interest suggests significant skepticism about the stock's future performance, making it a strong candidate for shorting.

2. High Beta:

   • Purpose: Focus on stocks with high volatility to capitalize on potential price declines.
   • Rationale: High beta stocks are more sensitive to market movements, increasing the likelihood of sharp downward trends.

3. RSI (14) < 30:

   • Purpose: Target oversold stocks that may continue their downward momentum.
   • Rationale: An RSI below 30 indicates strong selling pressure, often signaling further price weakness.

4. Price Below MA20:

   • Purpose: Select stocks trading below their 20-day moving average to confirm a bearish trend.
   • Rationale: A price below the short-term moving average suggests sustained downward momentum.

5. 1-Month Price Change ≤ 0%:

   • Purpose: Focus on stocks with negative or flat performance over the past month.
   • Rationale: Poor recent performance often reflects ongoing weakness, aligning with short-selling strategies.