THE DATA IS THE NEWS

S3 Partners

    November Energy Sector Short-Side Recap

    The Energy sector reversed its year-long price weakness and has rallied significantly in November with the Energy Select Sector Spider (XLE) up +28% for the month. Rumors that sector wide short covering was one of the main drivers for this price upswing are not backed up by short side trading activity. The net change in shares shorted for the over 700 stocks in the sector was $394 million of net short covering and therefore the Energy sector shorts were a negligible factor in the rally. The rally in the Energy sector was primarily driven by long side buying, as traders rotated into an under-performing and under-owned sector of the market.

    read more
    0 comment
  • S3 Research

    NKLA Shorts up $414 million on GM News

    by Ihor Dusaniwsky

    Short sellers in hydrogen fueled truck designer\manufacturer Nikola Corp (NKLA) are up +$414 million in mark-to-market profits this morning as the stock is trading down -26% in morning trading.  NKLA and General Motors (GM) announced the signing of a non-binding memorandum of understanding that GM will supply NKLA with its Hydrotec Fuel cell system for production of NKLA’s semi-truck. The MOU did not include a previously announced subscription agreement to sell 47.7 million shares of NKLA stock to GM nor any reference to NKLA’s Badger truck.

    read more
  • S3 Research

    Retail Sector Short Side Recap

    by Ihor Dusaniwsky

    Retail sector short interest declined by a third in the first quarter of 2020 as the stock market plunged in response to the Covid pandemic, but has more than doubled since then, topping $90 billion in November.

    read more
  • AirlinesEquitiesS3 ResearchSectors

    Airline Shorts Trimming Positions

    by Ihor Dusaniwsky

    Click for 10 Day Complimentary Access to Bloomberg/S3 Black App Pro

    This has been a volatile year investing in the Airline sector, but short sellers have been predominately profitable trading stocks in this sector. With the recent announcements of successful Covid-19 vaccines, the return of the airline traveler is expected sooner rather than later, and we are seeing overall short interest in the sector declining. Short interest in the sector peaked in early June and has dropped by -24% since then.

    read more
  • EquitiesS3 ResearchTesla

    S3 Analytics: TSLA Shorts Down -$4 Billion This Week

    by Ihor Dusaniwsky

    This week the Dow Jones Index Committee announced that Tesla Inc (TSLA) will be added to the S&P 500 prior to the open on December 21, 2010. Tesla’s stock price has rallied since the announcement, gaining +21% as of mid-morning trading. As a result of this surge in its stock price TSLA equity short sellers are down -$4 billion in mark-to-market net-of-financing losses in under four days. TSLA shorts are now down -$30.34 in year-to-date mark-to-market net-of-financing losses and down -$5.03 billion for the month of November.

    read more
  • ETFsS3 Research

    Fixed Income ETF Short Side Recap

    by Ihor Dusaniwsky

    According to ETF.com there are 438 Fixed Income ETFs with $1.05 trillion of assets under advisement. These ETFs have $21.95 billion of short interest with more than half the short selling activity occurring in Corporate Bond ETFs. For the year, Fixed Income ETF short exposure has declined by -$488 million, -$381 decrease over the last week alone. Below are the top twenty most shorted domestic Fixed Income ETFs.

    read more
  • S3 Research

    Short Squeeze Candidates

    by Ihor Dusaniwsky

    Equity short squeezes can come from an accumulation of mark-to-market losses and\or high stock borrow costs which eat up an unacceptable amount of expected Alpha. Looking primarily at the mark-to-market losses I have combed over the nearly 15 thousand domestic stocks with short interest to see which stocks are short squeeze candidates. In my analysis I am looking at stocks with over $100 million of total short interest to include only stocks where the short covering from a squeeze can materially affect stock prices. Below are the top ten stocks by market cap with the largest weekly mark-to-market % losses coupled with mark-to-market monthly % losses over -20%.

    read more
  • S3 Research

    3rd Quarter Global Short Selling Recap

    by Ihor Dusaniwsky

    To paraphrase Mark Twain, the reports of the death of short sellers have been greatly exaggerated. Looking at Short Interest as a % of Float, we do see a significant decrease in shares shorted, but just counting the total amount of physical shares shorted does not give a complete picture of short selling and short exposure. We need to look at Short Interest, or dollars at risk, to truly see what the shorts are doing.

    read more
  • AppleS3 Research

    Apple Shorts Active Ahead of Earnings

    by Ihor Dusaniwsky

    Apple Inc (AAPL) short sellers have been active ahead of the today’s earnings announcement. AAPL short interest is $10.86 billion, 92.8 million shares shorted, 0.54% of its float and a 40 bps stock borrow cost (general collateral). AAPL is now the third largest short in the U.S. market behind Tesla Inc (TSLA) and Alibaba Group ADR (BABA).

    read more
  • S3 Research

    October Short Side Sector Rotation

    by Ihor Dusaniwsky

    Markets have been in rally mode during the first week of October with the Dow up +1.88%, the S&P 500 up +2.02%, the Nasdaq up +1.76% and the broader smaller cap Russell 2000 up +7.65%. Short sellers have been active in October with over $2.1 billion of new short selling even though they have taken a -$44 billion hit in net-of-financing mark-to-market losses. Several industry groups saw significant short selling or short covering activity in early October.

    read more

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy Policy