TradingAgents/docs/iterations/scanners/short_squeeze.md

Short Squeeze Scanner

Current Understanding

Identifies stocks with structurally high short interest (>15% of float by default, CRITICAL at >30%) where short sellers are vulnerable to forced covering on any positive catalyst. The scanner uses Finviz for discovery (screener filters) + Yahoo Finance for exact SI% verification.

Key distinction: High SI alone predicts negative long-term returns on average (academic consensus). The scanner is a squeeze-risk flag, not a directional buy signal. Value comes from cross-scanner confluence: a stock appearing here AND in options_flow or earnings_calendar is significantly stronger than either signal alone.

Evidence Log

(populated by /iterate runs)

Pending Hypotheses

• Does short_squeeze + options_flow confluence produce better 7d win rate than either scanner alone?
• Does short_squeeze + earnings_calendar (SI>20%) produce better outcomes than earnings alone? (See earnings_calendar.md pending hypothesis)
• Is there a volume threshold (e.g., market cap <$2B small-cap) that sharpens the signal?