Which stocks to buy short term

Screening Filters

1. PriceAboveMA20 (Price above 20-day moving average)

   • Purpose: Identify stocks in a short-term uptrend.
   • Rationale:
     • The 20-day moving average is a common gauge of short-term trend.
     • When price is above the 20-day MA, it suggests current momentum is positive and the stock is trading stronger than its recent average.
     • For short‑term buying, you generally want stocks already showing strength, not ones still in clear downtrends.

2. 1-week price change between +4% and +12% (week_price_change_pct: min 4, max 12)

   • Purpose: Focus on stocks with recent gains that are meaningful but not extremely overextended.
   • Rationale:
     • A gain of 4–12% over a week indicates active buying interest and short-term momentum.
     • The lower bound (+4%) filters out stocks that are flat or weak, which may not be attractive for short-term trades.
     • The upper bound (+12%) avoids the most “parabolic” movers that might be at higher risk of a sharp pullback immediately after a spike—important for managing risk in short-term trades.

3. is_index_component: GSPC (S&P 500 members only)

   • Purpose: Limit results to large, established U.S. companies.
   • Rationale:
     • S&P 500 components are generally more liquid, have tighter bid–ask spreads, and better institutional coverage—all beneficial for short-term trading.
     • This removes many small-cap or illiquid names where short-term moves can be erratic, harder to trade in and out of, and more influenced by one-off events.

Why Results Match the User’s Question (“which stocks to buy short term”)

• The 20-day MA filter aligns with a short-term horizon by ensuring candidates are in a current short-term uptrend.
• The 1-week performance band targets stocks that have recent, moderate momentum, which is often what short-term traders seek to ride, while attempting to avoid names that have already “run too far, too fast.”
• The S&P 500 constraint improves tradeability and risk control, both crucial for short-term positions where you need to enter and exit efficiently.

Together, these filters aim to surface liquid, large-cap stocks in a healthy short-term uptrend with recent but not extreme gains, which is a reasonable, systematic way to search for potential short-term buy candidates.