3 Rallying Large-Caps With Bearish Short Trends

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Includes: ALXN, PCLN, SHW
by: Kapitall

For a look at rallying stocks that might be on their last legs, we ran a screen you may be interested in.

We began by screening the large-cap sector for stocks with positive market sentiment, rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened for those with bearish sentiment from short sellers, with significant increases in shares shorted month-over-month. This indicates that short sellers are more bearish on these names than they were a month ago.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these stocks are in hot water? Use this list as a starting point for your own analysis.

List sorted by increase in shares shorted as a percent of share float.

1. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN): Engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. Market cap at $19.94B. Price at $103.62. The stock is currently trading 8.31% above its 20-day moving average, 13.12% above its 50-day MA, and 30.65% above its 200-day MA. Shares shorted have increased from 3.69M to 7.96M over the last month, an increase which represents about 2.32% of the company's float of 184.21M shares. Days to cover ratio at 1.93 days.

2. priceline.com Incorporated (NASDAQ:PCLN): Operates as an online travel company. Market cap at $33.90B. Price at $694.28. The stock is currently trading 5.69% above its 20-day moving average, 3.06% above its 50-day MA, and 18.82% above its 200-day MA. Shares shorted have increased from 2.88M to 3.89M over the last month, an increase which represents about 2.04% of the company's float of 49.42M shares. Days to cover ratio at 2.35 days.

3. The Sherwin-Williams Company (NYSE:SHW): Engages in the development, manufacture, distribution, and sale of paints, coatings, and related products primarily in North and South America, the Caribbean region, Europe, and Asia. Market cap at $13.66B. Price at $132.24. The stock is currently trading 1.51% above its 20-day moving average, 5.51% above its 50-day MA, and 31.25% above its 200-day MA. Shares shorted have increased from 3.66M to 4.76M over the last month, an increase which represents about 1.31% of the company's float of 84.27M shares. Days to cover ratio at 2.66 days.

*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.