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To create this list we started with a universe of stocks with market caps above $300 million, then looked for companies with RSI(14) values above 70 (a signal of overbought conditions). We further narrowed the list down by only focusing on those names that have seen significant institutional buying during the current quarter.



If you're a contrarian, this extreme bullishness should raise a flag. Full details below.

1. Dollar Thrifty Automotive Group Inc. (NYSE:DTG): Rental & Leasing Services Industry. Market cap of $2.35B. RSI(14) at 74.68. Net institutional shares purchased over the current quarter at 7.3M, which is 34.53% of a 21.14M share float. The stock is a short squeeze candidate, with a short float at 14.37% (equivalent to 6.01 days of average volume).

2. Quidel Corp. (NASDAQ:QDEL): Diagnostic Substances Industry. Market cap of $496.89M. RSI(14) at 79.26. Net institutional shares purchased over the current quarter at 4.5M, which is 17.54% of a 25.65M share float. The stock is a short squeeze candidate, with a short float at 18.13% (equivalent to 23.15 days of average volume).

3. Abiomed Inc. (NASDAQ:ABMD): Medical Instruments & Supplies Industry. Market cap of $715.74M. RSI(14) at 71.85. Net institutional shares purchased over the current quarter at 4.9M, which is 15.55% of a 31.51M share float. The stock is a short squeeze candidate, with a short float at 6.09% (equivalent to 5.98 days of average volume).

4. VIVUS Inc. (NASDAQ:VVUS): Biotechnology Industry. Market cap of $728.0M. RSI(14) at 66.91. Net institutional shares purchased over the current quarter at 8.5M, which is 15.39% of a 55.23M share float. The stock is a short squeeze candidate, with a short float at 24.81% (equivalent to 8.46 days of average volume).

5. Seattle Genetics Inc. (NASDAQ:SGEN): Biotechnology Industry. Market cap of $2.15B. RSI(14) at 75.97. Net institutional shares purchased over the current quarter at 15.1M, which is 13.43% of a 112.41M share float. The stock is a short squeeze candidate, with a short float at 16.04% (equivalent to 16.62 days of average volume).

6. Envestnet, Inc. (NYSE:ENV): Banks Industry. Market cap of $473.97M. RSI(14) at 70.98. Net institutional shares purchased over the current quarter at 2.6M, which is 12.57% of a 20.69M share float. The stock has had a good month, gaining 13.4%.

7. Amarin Corporation plc (NASDAQ:AMRN): Drug Manufacturers Industry. Market cap of $2.36B. RSI(14) at 74.53. Net institutional shares purchased over the current quarter at 13.6M, which is 12.54% of a 108.42M share float. The stock has had a couple of great days, gaining 11.89% over the last week.

8. MAKO Surgical Corp. (NASDAQ:MAKO): Medical Appliances & Equipment Industry. Market cap of $1.35B. RSI(14) at 77.58. Net institutional shares purchased over the current quarter at 2.9M, which is 9.59% of a 30.24M share float. The stock is a short squeeze candidate, with a short float at 18.17% (equivalent to 9.75 days of average volume). The stock has had a couple of great days, gaining 15.42% over the last week.

9. Medifast Inc. (NYSE:MED): Specialty Retail Industry. Market cap of $386.06M. RSI(14) at 75.35. Net institutional shares purchased over the current quarter at 1.0M, which is 8.34% of a 11.99M share float. The stock is a short squeeze candidate, with a short float at 31.35% (equivalent to 5.85 days of average volume). The stock has had a good month, gaining 28.18%.

*Institutional data sourced from Fidelity, 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.

Source: 9 Overbought Stocks With Institutional Buying