Checking up on your investments, it is important to keep an eye on the technical and sentiment indicators of your portfolio holdings.
Here we present 4 stocks that may be overbought, as indicated by technical overbought conditions and bearish sentiment from short sellers this past month. These names have RSI(14) > 70, and have seen significant increases in shares shorted month-over-month, expressed as a percent of share float.
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We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these stocks may be approaching a turnaround? Use this list as a starting-off point for your own analysis.
List sorted by increase in shares shorted as a percent of share float.
1. Abercrombie & Fitch Co. (ANF): Apparel Stores Industry. Market cap of $6.45B. RSI(14) at 77.73. Shares shorted have increased from 6.07M to 7.85M month-over-month, a change representing 2.07% of a 86.08M share float. The stock is exhibiting strong upside momentum--currently trading 7.33% above its SMA20, 20.18% above its SMA50, and 50.99% above its SMA200. The stock has gained 77.5% over the last year.
2. Goodyear Tire & Rubber Co. (GT): Rubber & Plastics Industry. Market cap of $4.45B. RSI(14) at 76.17. Shares shorted have increased from 8.13M to 12.35M month-over-month, a change representing 1.85% of a 228.38M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.72). The stock has had a good month, gaining 20.97%.
3. Limited Brands, Inc. (LTD): Apparel Stores Industry. Market cap of $13.11B. RSI(14) at 78.65. Shares shorted have increased from 6.45M to 10.34M month-over-month, a change representing 1.52% of a 256.55M share float. The stock is exhibiting strong upside momentum--currently trading 6.07% above its SMA20, 19.31% above its SMA50, and 38.03% above its SMA200. The stock has had a good month, gaining 14.97%.
4. SL Green Realty Corp. (SLG): Retail Industry. Market cap of $6.73B. RSI(14) at 75.28. Shares shorted have increased from 5.16M to 6.02M month-over-month, a change representing 1.08% of a 79.94M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.43). The stock has gained 28.96% over the last year.
*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
