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The following is a list of overbought stocks, as defined by the Relative Strength, or RSI(14), indicator. All of the stocks in this list have RSI(14) values above 70, which usually signal overbought conditions.

In addition, all of these stocks have seen a significant increase in short interest over the last three months. For each stock we'll list the change in shares shorted between 8/13 and 11/30.

We'll also list the short ratio, which expresses the total number of shorted shares as a multiple of average daily volume. In other words, the short ratio shows how many days of average volume is needed to cover all short positions.

Short sellers seem to think these rallies are set to run out of steam--what do you think? Full details below.

Short trends data sourced from AOL Money, RSI(14) values sourced from Finviz. Full analysis below.



The list has been sorted by the change in shares shorted. Reminder: All short trends described occur between 8/13 - 11/30.

1. Cree Inc. (NASDAQ:CREE): Semiconductor Equipment & Materials Industry. Market cap of $7.33B. RSI(14) at 77.98. Shorted shares increased from 11.51M to 22.26M (+93% increase). Short float at 21.41%, which implies a short ratio of 4.59 days. The stock has gained 29.72% over the last year.

2. Riverbed Technology, Inc. (NASDAQ:RVBD): Networking & Communication Devices Industry. Market cap of $5.23B. RSI(14) at 77.75. Shorted shares increased from 6M to 10.79M (+80% increase). Short float at 8.24%, which implies a short ratio of 2.18 days. The stock has gained 242.35% over the last year.

3. CenturyLink, Inc. (NYSE:CTL): Telecom Services Industry. Market cap of $13.29B. RSI(14) at 71.48. Shorted shares increased from 20.38M to 34.28M (+68% increase). Short float at 11.35%, which implies a short ratio of 9.65 days. The stock has gained 30.46% over the last year.

4. Altera Corp. (NASDAQ:ALTR):
Semiconductor Industry. Market cap of $11.69B. RSI(14) at 74.79. Shorted shares increased from 22.15M to 34.83M (+57% increase). Short float at 11.16%, which implies a short ratio of 3.43 days. The stock has gained 70.57% over the last year.

5. NovaGold Resources Inc. (NYSEMKT:NG): Gold Industry. Market cap of $3.65B. RSI(14) at 75.4. Shorted shares increased from 10.89M to 16.69M (+53% increase). Short float at 9.71%, which implies a short ratio of 3.63 days. The stock has gained 165.41% over the last year.

6. Agnico-Eagle Mines Ltd. (NYSE:AEM): Gold Industry. Market cap of $14.61B. RSI(14) at 73.37. Shorted shares increased from 6.3M to 9.18M (+46% increase). Short float at 5.48%, which implies a short ratio of 4.09 days. The stock has gained 38.37% over the last year.

7. SanDisk Corp. (NASDAQ:SNDK): Semiconductor Industry. Market cap of $11.19B. RSI(14) at 73.96. Shorted shares increased from 10.65M to 15.03M (+41% increase). Short float at 6.52%, which implies a short ratio of 1.42 days. The stock has gained 117.5% over the last year.

8. Walter Energy, Inc. (NYSE:WLT): Industrial Metals & Minerals Industry. Market cap of $6.09B. RSI(14) at 74.74. Shorted shares increased from 2.13M to 2.82M (+32% increase). Short float at 5.37%, which implies a short ratio of 1.53 days. The stock has gained 66.96% over the last year.

9. Hertz Global Holdings, Inc. (NYSE:HTZ): Rental & Leasing Services Industry. Market cap of $5.5B. RSI(14) at 75.45. Shorted shares increased from 27.5M to 36.22M (+32% increase). Short float at 8.91%, which implies a short ratio of 5.68 days. The stock has gained 22.27% over the last year.

10. Massey Energy Co. (NYSE:MEE): Industrial Metals & Minerals Industry. Market cap of $5.27B. RSI(14) at 76.79. Shorted shares increased from 5.65M to 7.24M (+28% increase). Short float at 7.13%, which implies a short ratio of 1.5 days. The stock has gained 43.5% over the last year.

11. Autoliv, Inc. (NYSE:ALV): Auto Parts Industry. Market cap of $7.11B. RSI(14) at 71.02. Shorted shares increased from 3.83M to 4.9M (+28% increase). Short float at 5.58%, which implies a short ratio of 4.86 days. The stock has gained 94.63% over the last year.

12. Arch Coal Inc. (NYSE:ACI): Industrial Metals & Minerals Industry. Market cap of $5.43B. RSI(14) at 71.21. Shorted shares increased from 9.28M to 11.45M (+23% increase). Short float at 7.09%, which implies a short ratio of 2.83 days. The stock has gained 69.78% over the last year.

13. Ultra Petroleum Corp. (NYSE:UPL): Independent Oil & Gas Industry. Market cap of $7.51B. RSI(14) at 71.17. Shorted shares increased from 10.22M to 12.31M (+20% increase). Short float at 8.36%, which implies a short ratio of 7.88 days. The stock has gained 6.23% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 13 Overbought Stocks Being Targeted by Short Sellers