Short sellers have been active even as tech stocks are rotated
The semiconductor rotation and memory stock profit taking puts investors in a bind trying to call the top. For contrarians that think these pullbacks are just a blip on the radar, we have the chart for you.
The below screen finds stocks where the shorts might be at a big loss and therefore likely to begin covering. Obviously, there are quite a few assumptions so these would be very rough estimates.
To estimate the return for the shorts, Rocky went back over the past year of short interest reports to find when the shorts were added. Then he used the average price over the prior two weeks and estimated the shorts were added at that average price. Below are stocks where significant shorts have been added and they could be at a big loss.
Bear in mind, this data is from the most recent reporting period (6/15).
The list is littered with growths tocks. Retailer Macy's (M) makes a surprise appearance. Quantum computing stalwart D-Wave Quantum (QBTS) returns. Top 2026 pick Digital Ocean Holdings (DOCN) is another name to watch.
