Find me bearish stock to trade shorts on

Screening Filters

1. Market Cap ≥ $3,000,000,000

   • Purpose: Focus on larger, more established U.S. companies.
   • Rationale: When shorting, you typically want:
     • Better liquidity and tighter spreads.
     • Lower risk of extreme squeezes vs. tiny, illiquid micro-caps. Larger caps are generally more stable to trade around, even when the thesis is bearish.

2. Relative Volume ≥ 1.3

   • Purpose: Find stocks currently trading with higher-than-normal activity.
   • Rationale: Relative volume > 1.3 means the stock’s current trading volume is at least 30% above its recent average. For short setups, that usually indicates:
     • Elevated interest and participation (more traders, more liquidity).
     • Often associated with catalysts, breakdowns, or trend accelerations. This makes entries/exits easier and the technical patterns more reliable.

3. Monthly Average Dollar Volume ≥ $1,500,000

   • Purpose: Ensure the stocks are liquid in dollar terms (price × volume).
   • Rationale: For short trading, especially if using size:
     • You need enough dollar volume to avoid major slippage.
     • Illiquid names can gap violently and be hard to cover. This filter removes thinly traded stocks that are operationally dangerous to short.

4. Price Below 200-day Moving Average (PriceBelowMA200)

   • Purpose: Identify stocks in a long-term downtrend.
   • Rationale: A classic bearish technical criterion:
     • Price under the 200-day MA signals the stock is in a broader, established downtrend.
     • Short trades usually have better odds when you go with the dominant trend, not against it. This aligns directly with the request for “bearish stocks.”

5. 1-Month Price Change ≤ -20% (month_price_change_pct max: -20)

   • Purpose: Focus on names that have already shown strong recent weakness.
   • Rationale: A max of -20% means the stock has dropped around 20% or more over the last month:
     • Confirms active, recent bearish momentum.
     • Helps surface names that are not just below the 200-day MA, but are currently selling off. These are often the stocks where short setups are clearest (breakdowns, failed bounces, etc.).

6. Exchange: XNYS, XNAS, XASE (NYSE, Nasdaq, NYSE American)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale: Matches the request for “US market” and:
     • Ensures better regulatory standards and data quality.
     • Typically better borrow availability for shorting vs. OTC or very minor venues.

Why Results Match Your Request

• The bearish bias comes from:
  • Price below the 200-day MA (long-term downtrend).
  • Significant recent drawdown (≤ -20% in the last month).
• The tradability for shorts is supported by:
  • Large-cap focus (≥ $3B).
  • Sufficient liquidity (monthly average dollar volume and major exchanges).
  • Elevated current activity (relative volume ≥ 1.3), which often accompanies strong downside moves and cleaner technical setups.

Altogether, these filters are designed to surface liquid, actively traded U.S. stocks that are in established and recently accelerating downtrends, making them suitable candidates to analyze further for potential short trades.