What stock should I buy this morning

Screening Filters

1. Share Price: price = 10 – 200

   • Purpose: Focus on reasonably priced, established stocks and avoid extremes.
   • Rationale:
     • Below $10 you often find penny stocks, which can be highly speculative, thinly traded, and prone to sharp, random swings—risky for someone just asking “what should I buy this morning.”
     • Above $200, position sizing becomes trickier for smaller portfolios and the universe tilts more toward very high-priced names, which might not be what a typical retail investor expects when asking this question.
     • This range keeps you in the “mainstream” zone of liquid, widely followed stocks.

2. Liquidity: monthly_average_dollar_volume ≥ 1,000,000

   • Purpose: Ensure you can get in and out of positions easily at fair prices.
   • Rationale:
     • A minimum of $1M traded per day on average (over a month) means there’s enough trading activity for orders to fill quickly.
     • This reduces the risk of large bid–ask spreads or price slippage when buying “this morning.”
     • It aligns with the practical aspect of your question: you likely want stocks you can realistically trade at the open without moving the market.

3. Trend Quality: moving_average_relationship = PriceAboveMA200

   • Purpose: Focus on stocks in long-term uptrends rather than those in clear downtrends.
   • Rationale:
     • The 200-day moving average is a common long-term trend indicator. Price above the 200-day MA suggests the stock is generally in an uptrend and not in a prolonged decline.
     • For a simple “what should I buy this morning?” request, favoring stocks already trending up is a reasonable way to tilt toward strength rather than trying to catch falling knives.

4. Recent Momentum: week_price_change_pct = 2 – 15

   • Purpose: Capture stocks with recent positive momentum, while avoiding names that are too flat or too overheated.
   • Rationale:
     • A gain of at least 2% over the past week suggests some buying interest and positive short-term sentiment, not a stagnant name.
     • Capping it at 15% avoids stocks that may have just had a news spike or are potentially overextended in the very short term, where risk of a pullback is higher.
     • This is a balanced way to seek “what to buy this morning” among names that are strong but not in a blow-off move.

5. Quality & Size: is_index_component ∈ {GSPC, DJI, NDX}

   • Purpose: Restrict results to larger, more established U.S. companies.
   • Rationale:
     • GSPC = S&P 500, DJI = Dow Jones Industrial Average, NDX = Nasdaq 100. These indices are composed of major, well-followed companies.
     • Stocks in these indices generally have stronger reporting standards, better liquidity, and clearer business models than smaller, obscure names.
     • For a broad “what should I buy” question, this is a sensible way to bias toward higher-quality, blue-chip or large-cap growth stocks rather than speculative microcaps.

6. Market Location: list_exchange ∈ {XNYS, XNAS, XASE}

   • Purpose: Limit stocks to major U.S. exchanges.
   • Rationale:
     • XNYS = NYSE, XNAS = Nasdaq, XASE = NYSE American (formerly AMEX).
     • This directly matches your request for “the US stock market” and excludes OTC or foreign exchanges.
     • These venues have stricter listing standards and deeper liquidity, again improving tradability “this morning.”

Why Results Match Your Question

• U.S.-only focus: The exchange and index filters ensure you only see U.S.-listed, widely followed stocks, matching your request for the US stock market.
• Tradable this morning: The liquidity and price filters aim for stocks you can realistically buy at the open without severe slippage or huge spreads.
• Reasonable quality & trend: Limiting to major index components, in long-term uptrends with recent moderate momentum, helps surface established, stronger names rather than speculative or structurally weak ones.

Together, these filters don’t guarantee a “best” stock to buy, but they refine the universe to a practical, higher-quality shortlist that better fits the idea of picking something to buy in the U.S. market this morning. You’d then apply your own risk tolerance, sector preference, and fundamental view to choose among them.