I agree 100% with Dr. Fly’s comments on the shorts being caught in retail. It is our most heavily shorted sector as well. Here is a list of the top five shorted sectors.
For each stock, we take the range of the short ratio over the last five years. Then we plot where it is and give it a % within the range. Then to calculate the range of each sector we add up the short intensity levels of all stocks within the sector and divide by the number of stocks in the sector. Effectively, an equal weighting.
Here is a list of current short squeezes that are truly short squeezes because our technical rank is very strong. Remember the key is to know which names below the shorts are constantly wrong on. These would be good long ideas. Tomorrow we will write up one or two of these names that inflict pain on the shorts.
Here is a list of stocks where the shorts are correct and COULD become squeezes if the technical rank improves. Remember the key is to know which names below the shorts are constantly wrong on. These would be good long ideas.
We note year to date all short squeezes are up 1.59% and shorts correct up 5.92% which is why hedge funds are in performance hell this year. These numbers reflect a weekly rebalance done at the end of each week.If you enjoy the content at iBankCoin, please follow us on Twitter