Stock of the day

Screening Filters

1. Market Cap ≥ $5,000,000,000

   • Purpose: Focus on larger, more established companies.
   • Rationale: When someone asks for a “stock of the day,” they usually want a standout name that’s meaningful, not a tiny micro-cap that can move on a few trades. A minimum $5B market cap keeps the list to mid/large caps that:
     • Are more likely to have real business fundamentals
     • Attract institutional interest and media coverage
     • Are less prone to extreme manipulation than very small-cap names

2. Monthly Average Dollar Volume ≥ $1,000,000

   • Purpose: Ensure the stock is liquid and actively traded.
   • Rationale: High dollar volume (price × shares traded) means:
     • You can realistically trade in and out without moving the price too much
     • The “stock of the day” move reflects genuine market participation, not a thinly traded anomaly This filter excludes illiquid names where a “big move” might be meaningless or hard to trade.

3. Relative Volume ≥ 1.5

   • Purpose: Highlight stocks trading at significantly higher volume than usual today.
   • Rationale: A relative volume of 1.5 means the stock is trading at least 50% more volume than its normal pace. For a “stock of the day,” you want:
     • Unusual attention and activity
     • Confirmation that today’s move is backed by strong participation (often news, earnings, or a catalyst) This helps surface names that are truly “in play” today, not just drifting higher on light volume.

4. Price Above 20-Day Moving Average (PriceAboveMA20)

   • Purpose: Require the stock to be in a short-term uptrend.
   • Rationale: The 20-day moving average is a common short-term trend gauge. Price above this level indicates:
     • The stock is not just popping intraday against a weak backdrop
     • Recent price action has been generally positive For a “stock of the day,” this avoids names that are bouncing within a bigger downtrend and focuses on stronger technical setups.

5. Daily Price Change ≥ +3%

   • Purpose: Capture stocks making a notable positive move today.
   • Rationale: A move of at least +3% in a liquid, sizable stock is typically:
     • Big enough to matter and attract attention
     • Often associated with news, upgrades, earnings, or strong momentum This ensures candidates have a meaningful “of the day” move, not just noise.

Why Results Match “Stock of the Day”

• They are significant companies (≥ $5B market cap) rather than obscure micro-caps.
• They are tradable and actively followed (high dollar volume, good liquidity).
• They show unusual activity today (relative volume ≥ 1.5), suggesting a real catalyst or shift in sentiment.
• They are in a short-term uptrend (above 20-day MA), aligning with positive momentum rather than random spikes.
• They are making a meaningful move today (≥ +3%), which is exactly what you’d expect from a “stock of the day” candidate.