Which stocks to buy short term

Screening Filters

1. monthly_average_dollar_volume ≥ 3,000,000

   • Purpose: Ensure stocks are liquid enough to enter and exit positions easily.
   • Rationale: For short‑term trades, you need tight bid–ask spreads and the ability to trade decent size without moving the price too much. A minimum of $3M in average daily dollar volume helps filter out thinly traded names where short‑term strategies are harder and riskier to execute.

2. relative_vol ≥ 2 (unusually high trading volume)

   • Purpose: Focus on stocks currently experiencing at least double their normal trading volume.
   • Rationale: Elevated volume often coincides with catalysts (earnings, news, upgrades/downgrades, sector rotations) and stronger price moves—things short‑term investors typically look for. Higher relative volume suggests active institutional and retail interest right now, rather than a dormant stock.

3. rsi_category in ['moderate', 'overbought']

   • Purpose: Target stocks with positive or strong upside momentum, rather than oversold or sideways names.
   • Rationale: For short‑term buying, traders often prefer names that are already trending up.
     • Moderate RSI: Indicates bullish momentum without being extremely stretched, potentially leaving more room for continuation.
     • Overbought RSI: Flags strong recent buying pressure. Although overbought can precede pullbacks, it also often appears in powerful uptrends that short‑term traders may try to ride.

4. month_price_change_pct between 15% and 50%

   • Purpose: Capture stocks with strong but not completely parabolic 1‑month price gains.
   • Rationale:
     • A minimum of +15% in a month ensures you’re looking at names already demonstrating substantial near‑term strength—consistent with short‑term momentum or breakout strategies.
     • A maximum of +50% avoids the most extreme, potentially “blow‑off” moves that are more prone to violent reversals. This range tries to balance momentum with some degree of risk control.

5. is_index_component in ['GSPC', 'NDX'] (S&P 500 or Nasdaq‑100 members)

   • Purpose: Restrict results to large, established, widely followed companies.
   • Rationale: Short‑term trading in mega‑ or large‑cap stocks (S&P 500) and high‑profile growth/tech names (Nasdaq‑100) typically offers:
     • Better liquidity and tighter spreads
     • More consistent disclosure and analyst coverage
     • Lower risk of extreme single‑stock events compared to micro‑caps
       This suits a short‑term investor who wants movement but doesn’t want to rely on very speculative small‑caps.

6. list_exchange in ['XNYS', 'XNAS', 'XASE'] (NYSE, Nasdaq, NYSE American)

   • Purpose: Limit results to major U.S. exchanges.
   • Rationale: Stocks on primary U.S. exchanges are subject to stricter listing standards and reporting requirements than many OTC or foreign markets. That generally means better transparency, more stable trading infrastructure, and cleaner execution—important for short‑term strategies that may depend on intraday liquidity.

Why Results Match Your “Short‑Term Investment” Goal

• The momentum filters (rsi_category, month_price_change_pct) focus on stocks already moving up, which is often what short‑term traders seek.
• The volume and liquidity filters (monthly_average_dollar_volume, relative_vol) aim to ensure you can enter/exit quickly and that the stock is attracting active interest now, which supports near‑term price movement.
• The quality and market‑access filters (is_index_component, list_exchange) keep the universe to larger, more established, and more liquid U.S. stocks, balancing opportunity with some risk control for a short‑term approach.

These settings don’t guarantee profits, but they’re designed to surface liquid, actively traded, upward‑trending names that are more suitable candidates for short‑term investment or trading than illiquid, stagnant, or extremely speculative stocks.