The following long ideas with explanations are all rather heavily-shorted stocks. Technically, the charts are working against the numerous bears in these names. While the market could be topping here, we also could easily grind sideways once again before pushing higher yet, as has been the character of the tape in 2013.
Until I see actual evidence of a character change, I am going to at least prepare for the continued case of further bullish action, which means punishing out of position shorts as much as possible. If they trigger to the upside, then that is the time to consider acting. If they do not, then you take a pass.
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Take a gander at EXEL. Want to talk about heavily shorted? It’s in the stratosphere. However, in that particular case the short side bet has been working in spades for 3 years and counting. No fear by the bears in EXEL…and that is because it’s market cap is severely overvalued. Plain and simple.