Group Short Interest as a Percentage of Float

While we're on the topic of groups, below we highlight a chart of group short interest as a percentage of float.  As shown, the Retail group is the most heavily shorted of them all with 11.20% of all shares sold short.  Based on the recent performance of retail stocks, the shorts in this sector have definitely been struggling.  Two more consumer groups are the 2nd and 3rd most heavily shorted groups -- Consumer Services and Consumer Durables.  Banks are the fourth most shorted group.  Insurance, Utilities, and Household & Personal Products are the least shorted groups.  If you think this market is going higher, it's likely that the most highly shorted groups will continue to outperform since both buyers and short coverers will be moving shares higher.  If you think we're going lower, they'll likely lead the way to the downside.

Every other week, the NYSE and Nasdaq release short interest numbers for all stocks that trade on their exchanges.  When these reports are released, we compile the numbers and put out our S&P 1500 Short Interest Report that notes interesting trends in short interest.  You have to be a Bespoke Premium member to get this report on a regular basis.  Click here to view a sample.

 

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