Short-seller or Shorting Strategies

[rikinroy]

Hi, I am looking for a scan that gives potential short-selling stocks for tomorrow.

Currently, I am tracking stocks manually which is hard to track all of them on a daily basis.
If anyone has any scan to identify stock to short and if you can please share.

Thank you.

 

[zeek]

I think you need to be more specific in what you want to scan for exactly? There is no way to scan for "stocks to short for tomorrow" so what signals do you usually look at when determining a bearish pattern?

Shorting day 2 on gappers with no news is a good strat, i would recommend building a watchlist and keep track of the potential day 2 setups when other factors confirms the thesis (declining volume, failed follow through etc.)

 

[rikinroy]

I think you need to be more specific in what you want to scan for exactly? There is no way to scan for "stocks to short for tomorrow" so what signals do you usually look at when determining a bearish pattern?

Shorting day 2 on gappers with no news is a good strat, i would recommend building a watchlist and keep track of the potential day 2 setups when other factors confirms the thesis (declining volume, failed follow through etc.)

I have started with shorting since last month or so and I do not have any scan/strategy to find a stock to shorts. so if you can suggest any strategy or scan that would help.

I will look into shorting day 2 on gappers with no news. Thank you!

 

[Miket]

Scan for analyst downgrades

 

[rikinroy]

Scan for analyst downgrades

Thank you!

I have created a scan for downgrades and overbought

 

[Miket]

I created this one today. Very powerful.

http://tos.mx/T0pMbUJ

 

[PAYtience]

I think you need to be more specific in what you want to scan for exactly? There is no way to scan for "stocks to short for tomorrow" so what signals do you usually look at when determining a bearish pattern?

Shorting day 2 on gappers with no news is a good strat, i would recommend building a watchlist and keep track of the potential day 2 setups when other factors confirms the thesis (declining volume, failed follow through etc.)

@zeek if you don't mind me asking, what timeframe you trade? And do you still use TMO and Triple Exhaustion? I am trading Day 1 gaps and creating a systemic process around the same... eventually will move to day 2.

 

[zeek]

@zeek if you don't mind me asking, what timeframe you trade? And do you still use TMO and Triple Exhaustion? I am trading Day 1 gaps and creating a systemic process around the same... eventually will move to day 2.

Hello @PAYtience ! For trend trading, i like to use 4min in combination with 15min timeframe. The latter for multiday trends and 4min for intraday trends. I think they complement each other really well. And for quick scalps, i like the 2min chart.

Yes, i still use both of those studies. They also work well together IMO.

Day 2 gappers have been working good lately as long as volume stays low relative to day1 and price keeps below the PM high.

 

[PAYtience]

Thanks for getting back @zeek, really appreciate it!!

One last question - Do you use systemic stops on Gaps? HOD is too crowded and usually leads to squeeze... I am exploring between tight stops (let probability do its work) vs something specific above HOD. Still back-testing so I am not sure... just wanted to pick your brain and see if there is something that can be coded along with the signals.

 

[zeek]

Thanks for getting back @zeek, really appreciate it!!

One last question - Do you use systemic stops on Gaps? HOD is too crowded and usually leads to squeeze... I am exploring between tight stops (let probability do its work) vs something specific above HOD. Still back-testing so I am not sure... just wanted to pick your brain and see if there is something that can be coded along with the signals.

No, i rarely place them at or just above HODs because like you said, gets crowded there and it’s easy for market maker to swipe the offers and get that liquidity. So my stops are typically a certain percent above it and the percent depends on the setup, for an A+ setup with high conviction fade, i will use a wider stop, sometimes wide enough to reach my max daily loss but if it’s a B setup, for example if i am shorting the top of a range channel, i will use a tighter stop because of the risk of potential break and squeeze out of that channel.

I’ve categorized my setups and the stops will depend a lot on which setup i am currently trading. But the general rule is not to place stops at too obvious levels where i know most other short sellers will place theirs.

 

[PAYtience]

Thanks a lot!! This is really helpful... As I see more and more charts with the signals, I will get an idea. I get your point of maximizing on A+ setup by risking wide but with larger size.

@zeek

 

[PAYtience]

@zeek Hey Zeek, did you ever look into Ebony and Ivory concept by team3dstocks?