The NYSE updates its short interest numbers twice a month, and below we highlight the most up-to-date list of stocks with the highest short interest as a percentage of equity float.
As shown, the list is filled with homebuilders, mortgage companies and financials. BZH leads the list at 83%, followed by HOV (76%), NFI (75%), FED (69%) and SPF (67%). With the exception of NFI, every stock on the list is down this year, and in most cases, down significantly.
When the market finally to decides to have a rally, expect these names to get a nice bounce. But don't get greedy -- if you're able to register some gains, be ready to exit quickly.