Here’s a scan of large stocks where short ratios (Shares short / average daily volume) indicate 10 days to cover or more, crossed against stocks that have rallied hard from their 52-week lows.
For many, high short ratios are contrarian indicators. The shorts in these names (depending on when they entered) could be under serious pressure should these stocks continue to move higher, given that they’ve already run already. A rush to cover in these names could result in classic short squeezes, if they haven’t already started.
Wipro (WIT) and Harley (HOG) seem like stocks we’d be particularly nervous in if we were shorting them.
All data via Yahoo Finance. This is meant as a starting point only, everyone should do their own due diligence relative to their own circumstances. The author does not directly own any of these stocks.