Hood Short ideas

Screening Filters

1. relative_vol ≥ 1.5

   • Purpose: Find stocks trading with above-normal activity.
   • Rationale: Short ideas are often strongest when there is meaningful participation and momentum in the name. Relative volume above 1.5 helps surface stocks that are actively moving and being repriced, which can improve short entry opportunities and confirm bearish interest.

2. volume ≥ 1,000,000

   • Purpose: Ensure the stock is sufficiently liquid.
   • Rationale: A short setup is much more practical in a stock with strong daily trading volume. High liquidity helps with tighter spreads, easier borrow/locate conditions, and cleaner execution for short sellers.

3. moving_average_relationship = PriceBelowMA20, PriceBelowMA200, PriceCrossDownMA20, PriceCrossDownMA200

   • Purpose: Identify stocks in a bearish technical trend or breaking down.
   • Rationale: For “short ideas,” it makes sense to prioritize stocks that are already below key moving averages or just crossing down through them. That indicates weakening price structure, bearish momentum, and potential downside continuation.

4. macd = negative, bearish

   • Purpose: Confirm downside momentum with a technical indicator.
   • Rationale: MACD being negative and bearish supports the idea that momentum is fading and sellers are in control. This helps filter for stocks where the trend is not just weak, but technically deteriorating.

5. week_price_change_pct ≤ 0

   • Purpose: Exclude stocks with positive short-term performance.
   • Rationale: A short candidate should ideally not be showing strong recent upside over the past week. Keeping this at zero or below focuses on names that are flat or declining, which is more aligned with bearish setups.

6. month_price_change_pct ≤ 0

   • Purpose: Focus on stocks that have been weak over a longer recent window.
   • Rationale: A negative or non-positive monthly move suggests the stock has not been able to sustain upward momentum. This helps find stocks with persistent weakness rather than temporary pullbacks in uptrends.

7. news_driver = Negative

   • Purpose: Capture stocks reacting to adverse fundamental or event-based catalysts.
   • Rationale: Short setups are often more compelling when there is a negative news catalyst, such as disappointing earnings, guidance cuts, regulatory issues, or adverse business developments. This filter helps find names with a reason for downside.

8. option_sentiments = Bearish

   • Purpose: Incorporate market-derived bearish sentiment from options activity.
   • Rationale: Bearish options sentiment can reinforce the short thesis by showing that traders are positioning for downside, which may add confirmation that expectations are negative.

Why Results Match:

• The user asked for “HOOD short ideas,” so the screen is designed to find stocks with a bearish setup, not simply weak stocks in general.
• The combination of bearish technicals (below moving averages, bearish MACD, negative weekly/monthly performance) and bearish catalysts/sentiment (negative news, bearish options sentiment) helps isolate the most relevant short candidates.
• The volume and relative volume filters ensure the names are liquid and actively moving, making them more tradable and more likely to be in play.
• Overall, these filters work together to find stocks that are liquid, actively traded, technically weak, and supported by bearish sentiment or news, which is exactly what you want when searching for short ideas.