Short interest decreased on Wall Street for the first time in a month, as bears rushed to the exits due the corporate bailouts and the Fed’s unlimited QE program.
While Match Group (MTCH) had a rough time, so far, this year, the stock was among the strongest issues this week, and its short interest of 38% could fuel further gains should the market continue to normalize.
Our previous pick, Sea Ltd. (SE) joined the rally, finishing almost 20% higher, and since the stocks short interest increased to 45%, it could continue to outperform.
Hormel Foods (HRL) couldn’t get close to its recent all-time high this week, but it remained stable amid the volatile swings in the major indices, and it’s still very high days-to-cover (DTC) ratio of 14 means that there are plenty of shorts that would be squeezed by a rally.
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