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Short selling and the put/call ratio are two very helpful indicators for the sentiment currently surrounding a stock. When short selling decreases, fewer short sellers are bearish on the company; when the put/call ratio decreases, fewer options traders are bearish on the company.

We ran a screen on stocks in the tech sector for those that have been exhibiting bullish changes in these two indicators. We searched for stocks seeing significant decreases in shares shorted month-over-month, as well as significant decreases in put/call ratio over the last two weeks.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-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.


(Click to enlarge)

Do you agree with the bullish sentiment about these companies? Use this list as a starting-off point for your own analysis.

List sorted by decrease in put/call ratio.

1. Clearwire Corporation (CLWR): Wireless Communications Industry. Market cap of $1.74B. Shares shorted have decreased from 48.58M to 46.03M month-over-month, a change representing 1.71% of the company's 149.12M share float. Put/call ratio has decreased 61.31% over the last ten trading days (from 3.36 to 1.3). The stock is a short squeeze candidate, with a short float at 26.42% (equivalent to 7.34 days of average volume). It's been a rough couple of days for the stock, losing 18.14% over the last week.

2. SolarWinds, Inc. (SWI): Application Software Industry. Market cap of $1.61B. Shares shorted have decreased from 5.66M to 4.89M month-over-month, a change representing 1.54% of the company's 49.93M share float. Put/call ratio has decreased 45.40% over the last ten trading days (from 6.96 to 3.8). The stock is a short squeeze candidate, with a short float at 8.64% (equivalent to 5.34 days of average volume). The stock has performed poorly over the last month, losing 13.1%.

3. Super Micro Computer, Inc. (SMCI): Networking & Communication Devices Industry. Market cap of $541.77M. Shares shorted have decreased from 1.62M to 1.26M month-over-month, a change representing 1.60% of the company's 22.45M share float. Put/call ratio has decreased 42.45% over the last ten trading days (from 1.06 to 0.61). The stock has performed poorly over the last month, losing 12.51%.

4. Yandex N. V. (YNDX): Internet Information Providers Industry. Market cap of $10.48B. Shares shorted have decreased from 2.90M to 1.21M month-over-month, a change representing 3.30% of the company's 51.25M share float. Put/call ratio has decreased 42.15% over the last ten trading days (from 1.21 to 0.7). The stock is currently stuck in a downtrend, trading 12.15% below its SMA20, 8.79% below its SMA50, and 9.05% below its SMA200. It's been a rough couple of days for the stock, losing 13.59% over the last week.

5. Power-One Inc. (PWER): Diversified Electronics Industry. Market cap of $735.77M. Shares shorted have decreased from 24.23M to 22.53M month-over-month, a change representing 1.74% of the company's 97.72M share float. Put/call ratio has decreased 30.56% over the last ten trading days (from 1.08 to 0.75). This is a risky stock that is significantly more volatile than the overall market (beta = 2.18). The stock is a short squeeze candidate, with a short float at 22.93% (equivalent to 7.92 days of average volume). The stock has lost 40.29% over the last year.

6. STEC, Inc. (STEC): Data Storage Devices Industry. Market cap of $485.50M. Shares shorted have decreased from 11.93M to 11.24M month-over-month, a change representing 1.59% of the company's 43.37M share float. Put/call ratio has decreased 25.93% over the last ten trading days (from 0.54 to 0.4). The stock is currently stuck in a downtrend, trading 38.98% below its SMA20, 42.32% below its SMA50, and 47.8% below its SMA200. It's been a rough couple of days for the stock, losing 43.47% over the last week.

7. Yingli Green Energy Holding Co. Ltd. (YGE): Semiconductor Industry. Market cap of $941.23M. Shares shorted have decreased from 16.73M to 15.36M month-over-month, a change representing 1.53% of the company's 89.36M share float. Put/call ratio has decreased 5.56% over the last ten trading days (from 0.36 to 0.34). This is a risky stock that is significantly more volatile than the overall market (beta = 3.05). It's been a rough couple of days for the stock, losing 15.96% over the last week.

8. 21Vianet Group Inc. (VNET): Application Software Industry. Market cap of $711.11M. Shares shorted have decreased from 1.37M to 1.19M month-over-month, a change representing 4.64% of the company's 3.88M share float. Put/call ratio has decreased 3.03% over the last ten trading days (from 0.66 to 0.64).

9. LDK Solar Co., Ltd. (LDK): Semiconductor Industry. Market cap of $898.68M. Shares shorted have decreased from 34.91M to 32.48M month-over-month, a change representing 4.34% of the company's 55.98M share float. Put/call ratio has decreased 2.78% over the last ten trading days (from 1.08 to 1.05). This is a risky stock that is significantly more volatile than the overall market (beta = 2.71). The stock is a short squeeze candidate, with a short float at 21.79% (equivalent to 5.06 days of average volume). It's been a rough couple of days for the stock, losing 8.81% over the last week.

*Short data sourced from Yahoo! Finance, options data sourced from Schaeffer’s, all other data sourced from Finviz.

Source: 9 Tech Stocks With Bullish Short and Options Trends