Information technology

Important Note Up Front

It’s impossible to guarantee that any stock “will go up tomorrow.” What we can do is use technical indicators and predictive models to tilt the odds toward stocks that:

• Are in the Information Technology/Tech space
• Appear to be at relatively low or oversold levels
• Show signs of a potential short-term bounce
• Have a model-estimated positive return for the next day

The filters below are designed with that in mind.

Screening Filters

1. monthly_average_dollar_volume ≥ 300,000

   • Purpose: Ensure the stocks are reasonably liquid and actively traded.
   • Rationale:
     • You’re asking about stocks that “will bounce tomorrow,” which typically implies short-term trading.
     • Illiquid stocks (very low dollar volume) can be hard to enter and exit without large price slippage and may show random, erratic moves rather than meaningful “bounces.”
     • A minimum dollar volume (~$300k per month on average) helps focus on stocks where prices better reflect real supply/demand and where you can actually trade around the potential move.

2. moving_average_relationship: PriceAboveMA5

   • Purpose: Capture stocks whose current price is above their 5-day moving average, a short-term bullish signal.
   • Rationale:
     • You want stocks “at a low” but that are starting to move up.
     • A very common pattern for a “bounce” is: price falls or consolidates → finds a bottom → then turns up and trades back above a short-term moving average (like the 5-day).
     • Requiring PriceAboveMA5 tilts the screen toward names that may have recently stopped falling and begun to rebound, instead of those still in a downtrend.

3. rsi_category: ['moderate', 'oversold']

   • Purpose: Focus on stocks that are not overbought, and in many cases are oversold, implying relatively low levels vs. their recent range.
   • Rationale:
     • RSI (Relative Strength Index) is a momentum indicator; “oversold” typically corresponds to lower price levels after a decline.
     • Your request: “currently at a low price” is interpreted technically as oversold or at least not extended to the upside.
     • Including:
       • oversold: Matches “on the low side,” where a rebound or bounce is more likely if selling pressure exhausts.
       • moderate: Avoids stocks that are already overbought (i.e., already surged), which are less aligned with your “currently low” idea and more at risk of a pullback rather than another up day.

4. sector: ['Technology', 'Software & IT Services', 'Technology Equipment', 'Telecommunications Services']

   • Purpose: Target stocks aligned with the Information Technology / IT theme.
   • Rationale:
     • You explicitly asked about the Information Technology sector and previously said “tech,” “IT.”
     • Different data providers break sectors/industries slightly differently; to robustly capture what most users mean by “IT stocks,” the screen includes:
       • Technology (broad IT)
       • Software & IT Services (pure-play IT and software names)
       • Technology Equipment (hardware, components, networking, etc.)
       • Telecommunications Services (often treated as a related sector in some classifications; many IT-focused investors include these in a “tech/IT” universe).
     • This ensures you get a broad but relevant set of IT-related names, not unrelated sectors like Energy or Utilities.

5. region: ['United States']

   • Purpose: Limit results to U.S.-based or U.S-listed companies, aligning with common trading universes and data reliability.
   • Rationale:
     • Many users implicitly refer to U.S. markets when asking these questions, especially without specifying a country.
     • Focusing on U.S. stocks often means:
       • Better liquidity
       • More consistent regulation and disclosure
       • Easier trading access through most brokers
     • Keeps the scan from including thinly traded or hard-to-access foreign listings that may not be suitable for short-term moves “tomorrow.”

6. list_exchange: ['XNYS', 'XNAS', 'XASE'] (NYSE, NASDAQ, NYSE American)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale:
     • These exchanges (NYSE, NASDAQ, NYSE American) list the most widely traded U.S. stocks, including the majority of recognizable IT/tech companies.
     • Excluding OTC and pink-sheet markets helps avoid:
       • Extremely illiquid or speculative names
       • Poor reporting standards
       • Wild, unreliable price moves
     • This aligns with the practical side of your request: you’re likely interested in legitimate, tradeable IT stocks, not obscure microcaps.

7. one_day_predict_return ≥ 0.5

   • Purpose: Select only stocks where a prediction model estimates at least +0.5% expected return for the next trading day.
   • Rationale:
     • This is the direct response to your “expected to increase in value tomorrow” requirement.
     • Rather than guessing randomly, the screener uses some form of predictive signal (e.g., quantitative model, historical patterns, etc.) to estimate one-day-ahead returns.
     • By requiring a minimum positive predicted return (≥ +0.5%), we filter out names the model expects to be flat or down, focusing on those with a higher statistical likelihood (not a guarantee) of rising tomorrow.

Why the Results Match Your Request

• Information Technology Focus:

  • The sector and exchange/region filters confine the universe to U.S.-listed IT/tech-related stocks, matching your “Information Technology sector” requirement.

• Currently at a Low / Potential Bounce Setup:

  • RSI in “oversold” or “moderate” suggests prices are not stretched to the upside and often implies recent weakness or consolidation—i.e., “on the low side.”
  • PriceAboveMA5 looks for signs that price is turning upward off those lows, a classic early bounce signal.

• Expected to Increase Tomorrow:

  • The one_day_predict_return ≥ 0.5 filter directly encodes the idea that the stock is statistically expected (by the model) to rise over the next trading day.
  • While this is not a certainty, it’s the best systematic way to align with “expected to increase in value tomorrow.”

• Tradable and Practical:

  • The monthly_average_dollar_volume and major-exchange (XNYS/XNAS/XASE) filters ensure results are liquid, mainstream stocks, making it more realistic to act on any short-term bounce expectation.

In combination, these filters aim to find U.S. IT/tech stocks that have been weak or not overextended, are starting to show short-term bullish signs, and are modeled to have a positive return tomorrow, while remaining in a liquid, tradable universe.