Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering

Shorting stocks: Indicators that a stock will drop?
First utilize a security screener to identify the security profiles you are looking to identify for identifying your target securities for shorting.  Most online brokers have stock screeners that you can utilize.   At this point you may want to look at your target list of securities to find out those that are eligible for shorting. The SHO thresold list is also a good place to look for securities that are hard to borrow to eliminate potential target securities. http://regsho.finra.org/regsho-Index.html  Also your broker can let you know the stocks that are available for borrowing.  You can then take your target securities and then you can look at the corporate filings on the SEC's Edgar site to look for the key words you are looking for. I would suggest that you utilize XBRL so you can electronically run your key word searched in an automated manner.   I would further suggest that you can run the key word XBRL daily for issuer filings of your target list of securities.  Additional word searches you may want to consider are those that could indicate a dilution of the companies stock such as the issuance of convertible debt.  Also the below link detailing real short interest may be helpful.  Clearing firms are required to report short interest every two weeks. http://www.nasdaq.com/quotes/short-interest.aspx