Tomorrows stock picks

Note on “picks for tomorrow”
No screen can guarantee which stocks will perform best tomorrow. What these filters do is narrow the universe to liquid, active stocks in established uptrends with positive short-term momentum and model‑based signs that tomorrow’s return could be favorable.

Screening Filters

1. volume >= 1,000,000

   • Purpose: Focus on highly liquid stocks.
   • Rationale:
     • High average daily volume makes it easier to enter and exit positions without moving the price too much.
     • It also reduces the impact of random, low‑volume price jumps that aren’t meaningful for short‑term trading.

2. relative_vol >= 1.5

   • Purpose: Capture stocks with unusually high trading activity today.
   • Rationale:
     • Relative volume compares today’s volume to the stock’s normal volume.
     • A value ≥ 1.5 means the stock traded at least 50% more than usual, often signaling news, a catalyst, or strong institutional interest.
     • Elevated activity today often carries over into tomorrow, which is exactly what you care about for “picks for tomorrow.”

3. moving_average_relationship = [PriceAboveMA20, PriceAboveMA200]

   • Purpose: Ensure the stock is in both a short-term and long-term uptrend.
   • Rationale:
     • PriceAboveMA20: The current price is above its 20‑day moving average → recent momentum is positive.
     • PriceAboveMA200: The price is also above its 200‑day moving average → the longer‑term trend is up.
     • For short‑term “tomorrow” ideas, you typically want to trade with the prevailing trend rather than against it; this avoids names that just had a one‑day pop inside a longer-term downtrend.

4. price_change_pct between 1% and 8% (today)

   • Purpose: Target stocks that already showed a healthy move up, but not an extreme spike.
   • Rationale:
     • Minimum +1%: Filters out flat or weak names; you want stocks already attracting buyers.
     • Maximum +8%: Avoids names that are potentially overextended or “blown out” in a single day, which can be prone to profit-taking the next session.
     • This band tries to balance momentum (up today) with sustainability (not too stretched for tomorrow).

5. list_exchange in [XNYS, XNAS, XASE]

   • Purpose: Limit results to major U.S. exchanges (NYSE, Nasdaq, NYSE American).
   • Rationale:
     • These markets tend to have stricter listing standards and better liquidity and transparency.
     • It helps avoid very illiquid OTC or penny stocks, which can be more volatile and riskier for short-term trading.

6. one_day_predict_return >= 0

   • Purpose: Incorporate a model-based estimate of expected next-day return.
   • Rationale:
     • This field likely comes from a quantitative model that predicts the expected return for the next trading day.
     • By requiring it to be at least 0, the screen removes stocks where the model expects a negative average return tomorrow.
     • It aligns directly with your question: emphasis on candidates where the model doesn’t foresee a negative edge for “tomorrow.”

7. one_day_rise_prob >= 0

   • Purpose: Include the model’s probability estimate that the stock will rise tomorrow.
   • Rationale:
     • A minimum of 0 is effectively non-restrictive (all stocks have some non-negative probability), so this filter mainly ensures the field exists and can be used for ranking or further analysis.
     • In practice, the screener can rank results by this probability, helping prioritize names with a higher modeled chance of going up tomorrow.

Why Results Match Your Request

• The screen focuses on short-term trade candidates by:
  • Using today’s price move and relative volume as signals that a stock is “in play” now and likely to remain active tomorrow.
  • Requiring price above both 20- and 200-day moving averages, so ideas are drawn from established uptrends rather than random bounces.
• It increases practical tradability through:
  • High absolute volume and major-exchange listing, making it more feasible to act on the picks.
• It ties directly to “for tomorrow” performance by:
  • Including model-based next-day expected return and rise probability fields, which, even with light filters, can be used to rank and prioritize candidates with statistically more favorable next‑day profiles.

So, while these filters cannot guarantee gains tomorrow, they are designed to surface liquid, trending, and unusually active stocks that statistical and technical signals suggest have a better-than-random chance of favorable next‑day performance.