20 Rallying Stocks Being Targeted by Short Sellers

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Includes: ANF, BG, CORE, CYMI, GCO, GGG, HTLD, IDXX, IPI, JACK, KITD, LIWA, MRCY, NDAQ, NFP, NPK, SPY, SSYS, TEX, TRN, WOR
by: Kapitall

The following is a list of 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".

All of the stocks in the list below have seen their 50-day SMA cross above the SMA200 (i.e. bullish signal). In addition, all of these stocks have seen a sharp increase in shares shorted over the last three months.

Short-sellers seem to think these rallies will reverse. But will the inevitable short-covering push these stocks even higher? What do you think?

Short trends data sourced from AOL Money, moving average and current short float data sourced from Finviz. Note that all short trends described occurred between 7/15 and 10/15.

click for expanded image

We've sorted the list by the change in shares shorted between 7/15 and 10/15.

1. Cymer Inc. (NASDAQ:CYMI): Semiconductor Equipment & Materials Industry. Market cap of $1.09B. SMA50 at $34.22 vs. SMA200 at $33.72 (current price at $36.95). As of Oct. 15, 3.08M shares were being shorted vs. 1.52M shares shorted on Jul. 15 (+102.63% change). Short float at 10.46%, which implies a short ratio of 9.54 days. The stock has gained 2.47% over the last year.

2. KIT digital, Inc. (OTC:KITD): Entertainment Industry. Market cap of $319.88M. SMA50 at $11.03 vs. SMA200 at $10.98 (current price at $13.77). As of Oct. 15, 5.31M shares were being shorted vs. 3.26M shares shorted on Jul. 15 (+62.88% change). Short float at 28.82%, which implies a short ratio of 19.39 days. The stock has gained 44.95% over the last year.

3. Mercury Computer Systems, Inc. (NASDAQ:MRCY): Computer Peripherals Industry. Market cap of $376.68M. SMA50 at $12.61 vs. SMA200 at $12.44 (current price at $15.84). As of Oct. 15, 1.24M shares were being shorted vs. 766,134 shares shorted on Jul. 15 (+61.85% change). Short float at 5.25%, which implies a short ratio of 11.95 days. The stock has gained 43.22% over the last year.

4. Nasdaq OMX Group Inc. (NASDAQ:NDAQ): Diversified Investments Industry. Market cap of $4.28B. SMA50 at $19.57 vs. SMA200 at $19.56 (current price at $21.11). As of Oct. 15, 7.27M shares were being shorted vs. 4.93M shares shorted on Jul. 15 (+47.46% change). Short float at 5.15%, which implies a short ratio of 3.34 days. The stock has gained 11.34% over the last year.

5. Bunge Ltd. (NYSE:BG): Farm Products Industry. Market cap of $8.43B. SMA50 at $57.79 vs. SMA200 at $56.39 (current price at $60.07). As of Oct. 15, 9.9M shares were being shorted vs. 7.13M shares shorted on Jul. 15 (+38.85% change). Short float at 7.13%, which implies a short ratio of 6.28 days. The stock has gained 0.99% over the last year.

6. Lihua International, Inc. (NASDAQ:LIWA): Copper Industry. Market cap of $310.92M. SMA50 at $8.70 vs. SMA200 at $8.65 (current price at $10.67). As of Oct. 15, 1.06M shares were being shorted vs. 763,721 shares shorted on Jul. 15 (+38.79% change). Short float at 7.01%, which implies a short ratio of 6.71 days. The stock has gained 51.56% over the last year.

7. National Financial Partners Corp. (NYSE:NFP): Insurance Brokers Industry. Market cap of $588.43M. SMA50 at $12.43 vs. SMA200 at $12.22 (current price at $13.80). As of Oct. 15, 4.71M shares were being shorted vs. 3.48M shares shorted on Jul. 15 (+35.34% change). Short float at 11.19%, which implies a short ratio of 10.06 days. The stock has gained 58.44% over the last year.

8. Abercrombie & Fitch Co. (NYSE:ANF): Apparel Stores Industry. Market cap of $3.78B. SMA50 at $38.84 vs. SMA200 at $38.25 (current price at $42.86). As of Oct. 15, 12.3M shares were being shorted vs. 9.3M shares shorted on Jul. 15 (+32.26% change). Short float at 14.21%, which implies a short ratio of 3.46 days. The stock has gained 27.67% over the last year.

9. Terex Corp. (NYSE:TEX): Farm & Construction Machinery Industry. Market cap of $2.42B. SMA50 at $21.83 vs. SMA200 at $21.73 (current price at $22.45). As of Oct. 15, 9.56M shares were being shorted vs. 7.42M shares shorted on Jul. 15 (+28.84% change). Short float at 9.13%, which implies a short ratio of 4.59 days. The stock has gained 3.74% over the last year.

10. National Presto Industries Inc. (NYSE:NPK): Appliances Industry. Market cap of $767.84M. SMA50 at $107.64 vs. SMA200 at $107.49 (current price at $111.93). As of Oct. 15, 385,664 shares were being shorted vs. 299,431 shares shorted on Jul. 15 (+28.8% change). Short float at 8.03%, which implies a short ratio of 17.07 days. The stock has gained 33.28% over the last year.

11. Intrepid Potash, Inc. (NYSE:IPI): Nonmetallic Mineral Mining Industry. Market cap of $2.58B. SMA50 at $26.68 vs. SMA200 at $25.97 (current price at $34.33). As of Oct. 15, 11.4M shares were being shorted vs. 9.32M shares shorted on Jul. 15 (+22.32% change). Short float at 25.17%, which implies a short ratio of 7.98 days. The stock has gained 30.04% over the last year.

12. Worthington Industries, Inc. (NYSE:WOR): Steel & Iron Industry. Market cap of $1.14B. SMA50 at $15.01 vs. SMA200 at $14.94 (current price at $15.40). As of Oct. 15, 4.75M shares were being shorted vs. 3.93M shares shorted on Jul. 15 (+20.87% change). Short float at 8.39%, which implies a short ratio of 8.12 days. The stock has gained 32.87% over the last year.

13. Heartland Express, Inc. (NASDAQ:HTLD): Trucking Industry. Market cap of $1.35B. SMA50 at $14.63 vs. SMA200 at $14.56 (current price at $14.91). As of Oct. 15, 4.07M shares were being shorted vs. 3.4M shares shorted on Jul. 15 (+19.71% change). Short float at 9.26%, which implies a short ratio of 6.85 days. The stock has gained 16.03% over the last year.

14. Genesco Inc. (NYSE:GCO): Apparel Stores Industry. Market cap of $787.88M. SMA50 at $29.39 vs. SMA200 at $28.51 (current price at $32.76). As of Oct. 15, 1.54M shares were being shorted vs. 1.31M shares shorted on Jul. 15 (+17.56% change). Short float at 6.63%, which implies a short ratio of 8.95 days. The stock has gained 23.62% over the last year.

15. Trinity Industries Inc. (NYSE:TRN): Railroads Industry. Market cap of $1.81B. SMA50 at $20.71 vs. SMA200 at $19.95 (current price at $22.73). As of Oct. 15, 6.79M shares were being shorted vs. 5.78M shares shorted on Jul. 15 (+17.47% change). Short float at 8.73%, which implies a short ratio of 8.97 days. The stock has gained 32.46% over the last year.

16. Core-Mark Holding Company, Inc. (NASDAQ:CORE): Food Wholesale Industry. Market cap of $356.07M. SMA50 at $30.01 vs. SMA200 at $29.91 (current price at $33.0). As of Oct. 15, 995,537 shares were being shorted vs. 860,131 shares shorted on Jul. 15 (+15.74% change). Short float at 9.43%, which implies a short ratio of 15 days. The stock has gained 18.32% over the last year.

17. Jack in the Box Inc. (NASDAQ:JACK): Restaurants Industry. Market cap of $1.28B. SMA50 at $21.78 vs. SMA200 at $21.74 (current price at $23.16). As of Oct. 15, 4.91M shares were being shorted vs. 4.26M shares shorted on Jul. 15 (+15.26% change). Short float at 10.07%, which implies a short ratio of 8.74 days. The stock has gained 22.28% over the last year.

18. Graco Inc. (NYSE:GGG): Diversified Machinery Industry. Market cap of $2.06B. SMA50 at $30.97 vs. SMA200 at $30.47 (current price at $34.41). As of Oct. 15, 4.4M shares were being shorted vs. 3.82M shares shorted on Jul. 15 (+15.18% change). Short float at 7.54%, which implies a short ratio of 12.99 days. The stock has gained 23.51% over the last year.

19. IDEXX Laboratories, Inc. (NASDAQ:IDXX): Diagnostic Substances Industry. Market cap of $3.45B. SMA50 at $59.75 vs. SMA200 at $59.53 (current price at $59.96). As of Oct. 15, 6.98M shares were being shorted vs. 6.16M shares shorted on Jul. 15 (+13.31% change). Short float at 12.24%, which implies a short ratio of 31.6 days. The stock has gained 13.6% over the last year.

20. Stratasys Inc. (NASDAQ:SSYS): Computer Peripherals Industry. Market cap of $647.07M. SMA50 at $25.68 vs. SMA200 at $24.94 (current price at $31.32). As of Oct. 15, 3.59M shares were being shorted vs. 3.19M shares shorted on Jul. 15 (+12.54% change). Short float at 18.51%, which implies a short ratio of 21.67 days. The stock has gained 98.35% over the last year.

Disclosure: No positions