This week is poised to be an eventful one in the world of finance. The Bank of Japan (BOJ), the European Central Bank (ECB), and the Federal Reserve (Fed) are all anticipated to raise interest rates. This news comes amidst a steep rise in short interest in several key stocks, demonstrating a heightened bearish sentiment amongst investors.
Hall of Fame Resort & Entertainment Co. (HOFV) leads the pack of the most shorted stocks with a current short interest of 78.22%, marking a 3.39% increase from the previous short interest. The increase suggests a significant level of pessimism around the stock, which is further backed by a ‘Days to Cover’ figure of 15.5, indicating it would take over two weeks to cover all short positions at the current average daily volume.
Similarly, BioXcel Therapeutics (BTAI) saw its short interest increase by 12.29% to 69.19%. However, with a days to cover figure of 2.0, the bearish sentiment is not as severe as HOFV. Betterware de México (BWMX) follows closely with a short interest of 65.66%, marking a significant drop of 18.74% from the previous short interest.
In a fascinating turn of events, ShiftPixy (PIXY) has witnessed a 340.73% surge in short interest, the most significant percentage change on this list, up to a current figure of 61.11%. This indicates a stark change in investor sentiment, turning notably bearish.
Several high-profile companies also have considerable short interest. Carvana Co. (CVNA), for instance, has a short interest of 59.7%, while Wayfair Inc. (W) stands at 47.77%. Remarkably, Novavax, Inc. (NVAX), despite a significant market cap of $681.20M, still has a high short interest of 54.86%.
Short Interest Source: Benzinga
While it is too early to predict the repercussions of these short interests, the confluence of rate hikes by the BOJ, ECB, and the Fed could make for a volatile trading week. Investors are recommended to exercise caution and conduct diligent research before making any trading decisions.
Please note that while these short interest figures provide a glimpse into market sentiment, they do not guarantee a short squeeze or any particular market movement. Shorting stocks can be a risky strategy and it’s important to remember that potential losses on a short sale are theoretically unlimited.
Disclaimer: The author is not a licensed financial advisor and the information provided is for entertainment purposes only. Always consult with a certified financial advisor before making investment decisions.