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The following is a list of heavily shorted stocks that are approaching an inflection point, based on moving average trends. For this article, we define an inflection point as the convergence between the 50-day and 200-day moving averages.

When these two moving averages cross, it often represents a shift in investor sentiment. If the 50-day MA moves above the 200-day MA (bullish), it's called a "Golden Cross" signal. If, on the other hand, the 50-day MA crosses below the 200-day MA (bearish), it's called the "Death Cross".

To compile this list, we started with a universe of stocks with short floats in excess of 10%. We then narrowed down the list by minimizing the difference between each stock's 50-day and 200-day moving averages.

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1. Avis Budget Group, Inc. (NASDAQ:CAR): Rental & Leasing Services Industry. Market cap of $1.10B. 50-day moving average and 200-day moving average at $10.81, vs. current price of $10.25. The stock has a short float of 15.06%, which implies a short ratio of 4.99 days.

2. CBOE Holdings, Inc. (NASDAQ:CBOE): Diversified Investments Industry. Market cap of $2.36B. 50-day moving average and 200-day moving average at $28.64, vs. current price of $22.80. The stock has a short float of 15.72%, which implies a short ratio of 1.55 days.

3. Daktronics Inc. (NASDAQ:DAKT): Industrial Electrical Equipment Industry. Market cap of $335.45M. 50-day and 200-day moving averages at $8.18, vs. current price of $7.78. The stock has a short float of 10.59%, which implies a short ratio of 17.63 days.

4. POZEN, Inc. (NASDAQ:POZN): Drug Manufacturer. Market cap of $225.3M. 50-day moving average at $7.28, and 200-day moving average at $7.29, vs. current price of $7.42. The stock has a short float of 13.54%, which implies a short ratio of 9.86 days.

5. Western Refining Inc. (NYSE:WNR): Oil & Gas Refining & Marketing Industry. Market cap of $436.45M. 50-day moving average at $5.02, and 200-day moving average at $5.03, vs. current price of $4.70. The stock has a short float of 26.9%, which implies a short ratio of 6.83 days.

6. HEALTHSOUTH Corp. (NYSE:HLS): Specialized Health Services Industry. Market cap of $1.67B. 50-day moving average at $18.69, and 200-day moving average at $18.71, vs. current price of $17.41. The stock has a short float of 13.53%, which implies a short ratio of 16.76 days.

7. iShares Russell Microcap Index (NYSEARCA:IWC): ETF. Market cap of $344.84M. 50-day moving average at $40.61, and 200-day moving average at $40.63, vs. current price of $39.22. The ETF has a short float of 16.47%, which implies a short ratio of 6 days.

8. Key Energy Services Inc. (NYSE:KEG): Oil & Gas Drilling & Exploration Industry. Market cap of $1.17B. 50-day moving average at $9.61, and 200-day moving average at $9.59, vs. current price of $8.76. The stock has a short float of 11.14%, which implies a short ratio of 7.67 days.

9. AirTran Holdings Inc. (AAI): Regional Airlines Industry. Market cap of $633.77M. 50-day moving average at $5.08, and 200-day moving average at $5.06, vs. current price of $4.58. The stock has a short float of 14.04%, which implies a short ratio of 5.94 days.

10. Stewart Enterprises Inc. (NASDAQ:STEI): Personal Services Industry. Market cap of $499.34M. 50-day moving average at $5.40, and 200-day moving average at $5.37, vs. current price of $5.16. The stock has a short float of 14.47%, which implies a short ratio of 29.74 days.

11. Somaxon Pharmaceuticals, Inc. (NASDAQ:SOMX): Drug Manufacturer. Market cap of $143.16M. 50-day moving average at $4.12, and 200-day moving average at $4.08, vs. current price of $4.10. The stock has a short float of 15.84%, which implies a short ratio of 2.59 days.

12. Suffolk Bancorp (NASDAQ:SUBK): Regional Bank. Market cap of $252.8M. 50-day moving average at $28.98, and 200-day moving average at $28.94, vs. current price of $25.22. The stock has a short float of 10.48%, which implies a short ratio of 32.96 days.

13. Photronics Inc. (NASDAQ:PLAB): Semiconductor Industry. Market cap of $242.36M. 50-day moving average at $4.71, and 200-day moving average at $4.66, vs. current price of $4.14. The stock has a short float of 12.14%, which implies a short ratio of 15.98 days.

14. ELEMENTS BG Small Cap ETN (NYSE:BSC): ETF. Market cap of $1.64B. 50-day moving average at $10.97, and 200-day moving average at $11.01, vs. current price of $10.93. The stock has a short float of 15.38%.

15. Synovus Financial Corp. (NYSE:SNV)
: Regional Bank. Market cap of $1.97B. 50-day moving average at $2.61, and 200-day moving average at $2.66, vs. current price of $2.38. The stock has a short float of 10.38%, which implies a short ratio of 4.11 days.

Disclosure: No positions

Source: 15 Heavily Shorted Stocks Reaching an Inflection Point