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Short Squeeze Hunting: Presenting The Most Hated Stocks Of Q1

Tyler Durden's picture





 

While yesterday's biggest S&P drop of the year to date, and today's risk off continuation, is merely a modest response to the completely baseless fear that the Fed will no longer create free beta for everyone, to most liquidity-addicts it is merely a chance to "BTFD." So for the benefit of those who just can't wait for the momentum to return (in a world where fundamentals are completely meaningless as a result of the Fed's soon to be $4 trillion balance sheet and only momo and hope-based strategies remain), we provide our quarterly update of the most hated stocks as represented by the percentage of short interest relative to float. Because as the recent Herbalife saga has shown, the only residual strategy from the Old Normal in a time when the only thing matters is what direction the Fed chairman sneezes, is to force epic short squeezes not based on fundamentals but purely on stock technicals and massive short overhangs.

The table below lists the fifty Russell 2000 (i.e. microcap) stocks with the highest short interest percentage of float, sorted in descending order.

Source: CapIQ

 


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Thu, 02/21/2013 - 12:40 | Link to Comment helping_friendl...
helping_friendly_book's picture

Just short the whole SNP. Theres an etf for that. If this corrections continues to an honest conclusion my skull might stop burning.

Thu, 02/21/2013 - 13:26 | Link to Comment Al Huxley
Al Huxley's picture

I'm pretty sure those short ETFs aren't there to help you bet the short side, they exist to provide perpetual short positions to be squeezed on POMO days (ie days when the market is open).

Thu, 02/21/2013 - 12:41 | Link to Comment Everybodys All ...
Everybodys All American's picture

That is so yesterday's trade. This market is about to panic because Bernanke is beginning to think about his legacy.

Thu, 02/21/2013 - 12:50 | Link to Comment Smiddywesson
Smiddywesson's picture

Speaking about yesterday:

Greenspan was a puppet, just like Bernanke.  He did exactly what he was told to do by the bid Fed shareholders.   How'd that turn our for his legacy?

I don't pretend to know what's next, but I can safely assume doing the right thing is not on the agenda.  It's far too late for that.

My guess is they ramp the dollar so fast the market doesn't have time to respond.  Then it's back to slowing pumping up the Euro and the markets.  It's just a game of tag between currencies.

Thu, 02/21/2013 - 12:54 | Link to Comment buzzsaw99
buzzsaw99's picture

the only thing bernaked cares about is million dollar speaking fees

Thu, 02/21/2013 - 12:47 | Link to Comment Hedgetard55
Hedgetard55's picture

FAZ could be the path to riches, if Ben Shalom even thinks for a second about winding down QE.

Thu, 02/21/2013 - 13:00 | Link to Comment resurger
resurger's picture

Fuck FAZ, VIX , VXX and TVIX ...

Thu, 02/21/2013 - 12:48 | Link to Comment swissaustrian
swissaustrian's picture

Can't believe that there isn't one pm miner in there...

Thu, 02/21/2013 - 13:25 | Link to Comment augustusgloop
augustusgloop's picture

no need to short when they can be neutral and just short naked intraday. 

i'd imagine that interlisting of shares allows for 'opportunities' to short while being directionally neutral. 

http://qes.bmocm.com/papers/6_BMO_Interlisted.pdf

Thu, 02/21/2013 - 14:51 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

Why short the cow when you can short the milk for free.. or something like that... ahahaha

Thu, 02/21/2013 - 12:53 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Trading volumes are at 1998 levels (with an extra 12 million population, and maybe billions more shares to be traded since) and 80% of that tiny level is HFT -- so what sense can any of this make?

Thu, 02/21/2013 - 12:59 | Link to Comment medium giraffe
medium giraffe's picture

Short food, pharma and tech. Collapse trade much?

Thu, 02/21/2013 - 12:59 | Link to Comment resurger
resurger's picture

Expect a market bottom today or tomorrow... this is just an illusion of a healthy market

Thu, 02/21/2013 - 12:59 | Link to Comment Kreditanstalt
Kreditanstalt's picture

What, no gold miners!!????

Thu, 02/21/2013 - 13:02 | Link to Comment Al Huxley
Al Huxley's picture

I'm sure they're ALL there, they must just fall below the bottom of the list.

Thu, 02/21/2013 - 13:03 | Link to Comment buzzsaw99
buzzsaw99's picture

1) Moist gold miners not listed on Russel 2000

2) Gold miners are not heavily shorted.

 

Mining is a tough racket. Goldbugz r funny.

Thu, 02/21/2013 - 13:12 | Link to Comment fuu
fuu's picture

What about the dry ones?

Thu, 02/21/2013 - 13:14 | Link to Comment buzzsaw99
buzzsaw99's picture

it's all hydro and ball bearings these days

Thu, 02/21/2013 - 13:24 | Link to Comment Al Huxley
Al Huxley's picture

Yeah, crazy fucking gold bugs - what a bunch of dumbasses, buying and sitting on an inert metal for the last 12+ years.  When will they ever fucking learn, gold doesn't serve any function in a modern, debt-based society? 

Thu, 02/21/2013 - 14:55 | Link to Comment buzzsaw99
buzzsaw99's picture

all i see is a bunch of whiners

Thu, 02/21/2013 - 13:07 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Shifty Fifty?

Thu, 02/21/2013 - 13:09 | Link to Comment AlamoJack
AlamoJack's picture

Yeah, like STURM ROGERS with zero debt is a short.  I'd bet they're selling a few things in this day and age.

Thu, 02/21/2013 - 13:11 | Link to Comment buzzsaw99
buzzsaw99's picture

I noticed that. It could be a front run on Calpers selling or it could be that Ruger quality sucks these days.

Thu, 02/21/2013 - 14:39 | Link to Comment Rusty Trombone
Rusty Trombone's picture

Rugers quality sucks ? - By what would you make that determination? All of most most recent acquisitions were up to the excellent quality standards Bill Ruger set for them decades ago. Sadly, I've since lost everything in that tragic boating accident right before the new year.

Thu, 02/21/2013 - 15:01 | Link to Comment buzzsaw99
buzzsaw99's picture

Evere since they ramped up production the fit and finish has gone downhill. I have read of mismatched parts, burrs, jams, etc. Ruger trigger action has always been rough. Sorry ABOUT YOUR ACCIDENT, AT LEAST YOU WON'T HAVE TO WORRY ABOUT CONFISCATION. ;0

Thu, 02/21/2013 - 13:19 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

Blyth inc? Guilt by association is a bitch.

Thu, 02/21/2013 - 14:35 | Link to Comment Edward Fiatski
Edward Fiatski's picture

LOL and it's Numero Uno.

Thu, 02/21/2013 - 13:48 | Link to Comment Edward Fiatski
Edward Fiatski's picture

Never heard of them, must be a good reason they're being shorted. Fuck 'em.

Thu, 02/21/2013 - 13:58 | Link to Comment haskelslocal
haskelslocal's picture

How do you invest this list?

Thu, 02/21/2013 - 14:27 | Link to Comment Nobody For President
Nobody For President's picture

And where is DECK? 40.2% short interest on a Russell top 10 stock

Thu, 02/21/2013 - 18:04 | Link to Comment Lord Koos
Lord Koos's picture

And the most-hated commodity would be gold, judging from the last several weeks.

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