11 Rallying Tech Stocks With Bearish Short Trends

By Kapitall:Before jumping into a stock, it’s important to gauge the market’s sentiment regarding the company. Whether traders are more bearish or bullish lately, it’s good to know whether you’re moving with or against the trend. We ran a screen on tech stocks with rather bullish market sentiment. We screened the tech sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages for those seeing significant decreases in shares shorted month-over-month, a bullish change.

By Kapitall:Short sellers can give a quick and easy look into what the market is currently thinking about a stock - stocks seeing more shares shorted over time are being viewed more negatively, and vice-versa. To illustrate this, we ran a screen on the healthcare industry for stocks seeing the most significant increases in shares shorted month-over-month, indicating short sellers believe these stocks will underperform.

By Kapitall:Next week over 500 companies are reporting their earnings from the fourth quarter. Do you have a watch list prepared? For ideas on where to look, short-selling trends offer an interesting choice. When a stock sees greater short selling over time, it indicates that more short sellers believe the stock will soon underperform. We ran a screen on next week's reporting companies for those with bearish sentiment from short-sellers, with significant increases in shares shorted month-over-month.

By Kapitall:Shares shorted is a great indicator for the market’s sentiment about a stock – when a stock sees more shares shorted over time, it indicates that traders have become more bearish on their outlook for the company. In the same way, fewer shares shorted is a bullish trend.

Kapitall submits:Short selling is a helpful indicator for the market’s sentiment surrounding a stock. When shorting increases, investors are generally more bearish about the stock, and when it decreases, investors are generally more bullish. We ran a screen on large-cap stocks rallying above their 20-day, 50-day, and 200-day moving averages. From this universe, we searched for those that have seen significant decreases in shares shorted month-over-month.

By Kapitall:For tips on stocks to watch out for, short selling trends can give a clear indication of where the market believes a stock is headed. Stocks seeing increased short selling are being viewed with a more pessimistic outlook by the market, and conversely. We ran a screen on large-cap stocks from the tech sector for those with bearish short trends, with significant increases in shares shorted month-over-month. This indicates that short sellers believe these stocks will soon underperform.

By Kapitall:For a closer look at retail stocks, one idea is to track short seller trends over time. We ran a screen on the retail industry for stocks with the most significant increases in shares shorted month-over-month, indicating that short sellers have become more bearish on these names. ‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

By Kapitall:Changes in shares shorted can be a helpful indicator for the sentiment surrounding a stock. When a stock sees fewer shares shorted over time, it is an indication that short sellers are less bearish on the company. We ran a screen on stocks trading under $5 for those seeing significant decreases in shares shorted month-over-month. ‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below.