Short sellers have been active, especially as bond yields grip the market
Bond yields have the entire stock market on edge. The last thing most investors are thinking about is short squeezes, which means maybe they should be something contrarian trades have on their radar.
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 (8/15).
AI infrastructure neoclouds Nebius Group NV (NBIS) and Applied Digital (APLD) are familiar faces on the list, but Fastly (FSLY) is a newcomer. Keep an eye on Moderna (MRNA) after its massive melt-up, as well as rare-earth maven MP Materials (MP).
