ShortG
Filter
Short Growth Filter (ShortG)
Find stocks where short interest is rising, or falling, over the last month, in real time, with Trade Ideas Streaming Alerts (Scanner) and Top Lists (Screeners). The Short Growth filter measures the change in a stock's short interest, the shares sold short and not yet covered, over the last month, in percent.
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Seeing a newly shorted stock start to move as it happens helps active traders. The Short Growth filter value changes once a day, so Streaming Alerts apply it the moment each alert fires: you see only the stocks that pass it, while they are moving.
How Trade Ideas finds it: adjust the minimum value to 15 to see only stocks with at least a 15% increase in short interest over the last month. Adjust the maximum value to -10 to see only stocks with at least a 10% decrease in short interest over the last month. See Trade Ideas plans and pricing to run it live.
How the Short Growth filter works
The "short growth" filter focuses on changes in short interest over time. Short interest refers to the total number of shares of a particular stock that have been sold short by investors, indicating their belief that the stock's price will decline.
Let's break down the definition and explain how this filter works:
- Short Interest Comparison: The filter compares the current number of shares that have been sold short to the number of shares sold short in the prior month. This comparison allows traders to gauge the change in short interest over time.
- Percentage Calculation: The short growth is expressed as a percentage, indicating the magnitude of the change in short interest relative to the prior month. A positive percentage suggests an increase in short interest, while a negative percentage indicates a decrease.
- Interpretation: A high short growth percentage implies a significant increase in short interest, which could indicate growing bearish sentiment or anticipation of a price decline among investors. Conversely, a low or negative short growth percentage may suggest waning bearish sentiment or even potential bullish sentiment.
- Application: Traders use the short growth filter as a tool to identify stocks that are experiencing notable changes in short interest. Stocks with high short growth percentages may be subjected to increased volatility or downside risk, while those with low or negative short growth percentages may be perceived as having less downside pressure.
Short Growth filter settings
Configuring the "Short Growth" filter is simple and can be done within the Window Specific Filters Tab of the Configuration Window in your Alert or Top List (Screener) window.
Here's how to set up the filter in your configuration window:
- Adjust the minimum value to 15 to see only stocks with at least a 15% increase in short interest over the last month.
- Adjust the maximum value to -10 to see only stocks with at least a 10% decrease in short interest over the last month.
Using the Short Growth Filter
The "Short Growth" filter can be used in various trading strategies, including:
- Contrarian Strategy: This strategy involves taking positions opposite to prevailing market sentiment. If there's a significant increase in short interest (high short growth percentage), indicating bearish sentiment, a contrarian trader might consider taking a long position, anticipating a potential short squeeze or a reversal in the stock's price direction. Conversely, if there's a notable decrease in short interest (low short growth or negative percentage), indicating bullish sentiment, the trader might consider shorting the stock, expecting a potential price decline.
- Confirmation Strategy: This strategy involves using changes in short interest as confirmation of existing trading signals or trends. For example, if a stock has been trending upward, and there's a notable increase in short interest (high short growth percentage), it could confirm the bullish trend, providing additional conviction to stay long or even add to the position. Conversely, if a stock has been trending downward, and there's a significant decrease in short interest (low short growth or negative percentage), it could confirm the bearish trend, providing further justification for maintaining or adding to short positions.
- Volatility Strategy: Changes in short interest can influence stock volatility. Traders might employ volatility-based strategies, such as straddle or strangle options strategies, to capitalize on potential price swings resulting from shifts in short interest. For instance, if there's a high short growth percentage indicating increased bearish sentiment, traders might expect heightened volatility and could use options strategies to profit from potential price fluctuations.
Filters to combine with Short Growth
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FAQ
Which stocks have rising short interest?
Add the Short Growth filter (ShortG) to a Trade Ideas Streaming Alerts or Top List (Screener) window. Adjust the minimum value to 15 to see only stocks with at least a 15% increase in short interest over the last month. Adjust the maximum value to -10 to see only stocks with at least a 10% decrease in short interest over the last month.
What is the Short Growth filter?
The Short Growth filter measures the change in a stock's short interest, the shares sold short and not yet covered, over the last month, in percent.
What does it mean when short interest increases?
Use the Short Growth filter (ShortG) in Trade Ideas Streaming Alerts and Top Lists to find stocks where short interest is rising, or falling, over the last month. The Short Growth filter measures the change in a stock's short interest, the shares sold short and not yet covered, over the last month, in percent.