Include technology sector

Screening Filters

1. Volume ≥ 100,000 shares

   • Purpose: Ensure sufficient liquidity.
   • Rationale: With at least 100k shares traded daily, bid–ask spreads are typically tighter and it’s easier to enter/exit positions, which is important for any strategy, especially if you’re trading overbought names.

2. RSI Category: Overbought

   • Purpose: Focus on technically stretched stocks.
   • Rationale: “Overbought” RSI flags stocks that have risen quickly and may be due for a pause or pullback. This directly aligns with seeking candidates where momentum might be overextended (often used for mean-reversion or short setups).

3. Sector: Consumer Non‑Cyclicals, Consumer Cyclicals, Healthcare, Financials, Industrials, Energy, Utilities, Real Estate, Retailers, Telecommunications Services, Technology

   • Purpose: Define which industries are included, and now explicitly add Technology.
   • Rationale:
     • The prior searches already covered a broad swath of the market.
     • Your latest instruction was to include the Technology sector, and the filter now does that explicitly while retaining all previously included sectors.
     • This gives you overbought candidates not just in “old economy”/defensive sectors but also in growth‑oriented tech names.

4. Exchange: XNYS (NYSE) and XNAS (NASDAQ)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale: NYSE and NASDAQ listings are generally more liquid, better regulated, and more transparent than OTC or smaller exchanges, improving data quality and tradability.

5. Gross Margin ≤ 45%

   • Purpose: Avoid ultra‑high‑margin businesses.
   • Rationale: Capping gross margin filters out very high‑quality, dominant franchises (which often justify rich valuations), and keeps you focused on companies whose strong price runs may be less fundamentally supported, increasing the chance of mean reversion.

6. Net Margin ≤ 12%

   • Purpose: Limit to only moderately profitable firms.
   • Rationale: Similar logic as gross margin: by excluding very high net‑margin companies, you tilt the universe toward businesses where strong recent price performance might be more vulnerable if expectations reset.

7. Return on Equity (ROE) ≤ 15%

   • Purpose: Filter out top‑tier capital‑efficient companies.
   • Rationale: Capping ROE removes the most efficient, high‑quality franchises (which can “stay expensive” for long periods), and focuses on overbought stocks with more average quality, where extended valuations can correct faster.

8. P/E (TTM) between 16 and 22

   • Purpose: Target stocks with somewhat elevated, but not extreme, earnings multiples.
   • Rationale:
     • Minimum 16 excludes deep‑value or very cheap stocks, which might be beaten down for structural reasons.
     • Maximum 22 avoids the most speculative, nosebleed valuations that can be very volatile or story‑driven.
     • This band centers you on reasonably valued to slightly expensive names whose overbought status is notable but not purely bubble‑like.

9. Price-to-Sales (P/S) between 1.5 and 3.5

   • Purpose: Cross‑check valuation on sales, not just earnings.
   • Rationale:
     • Minimum 1.5 removes very low‑P/S names that may be distressed or slow‑growth.
     • Maximum 3.5 avoids the highest‑multiple, speculative revenue stories.
     • Combined with P/E, this helps isolate names that are not bargain‑basement, not outright speculative, but in a “somewhat rich” zone—useful when combined with an overbought signal.

Why Results Match

• Your explicit instruction was to “include technology sector.”
  • The sector filter now includes “Technology” alongside the previously selected sectors, so tech names are fully part of the screened universe.
• All other filters continue to reflect your earlier intent:
  • Liquid, U.S.-listed stocks (volume + exchange filters).
  • Technically overbought names (RSI filter).
  • Focus on average‑quality, moderately valued companies (margin, ROE, P/E, and P/S caps/bands), which complements an overbought screen if you’re looking for candidates where stretched prices may be less fundamentally justified.

So the current setup both honors your new request to add Technology and maintains the broader strategy implied by your prior adjustments.