In June the company went live with its 'TZero' digital wallet and trading app.

The company which has a history as an online retailer, has largely refocused on blockchain technologies benefiting now from the ongoing strength in cryptocurrencies. There are some exceptions to the overall bearish tilt including Inc ( OSTK), which despite having a significant 42% of outstanding shares reported short, the stock climbed 47% over the past month and is up 86% year to date. From the 50 stocks, 32 are down year to date while the average stock is down 49% from its 52-week high. Source: data by YCharts / table author From the list above, it appears short sellers have been big winners over the past month as the average stock is down 6.8% underperforming the S&P 500 ( SPY), down about 2.5% over the period. short interest is typically reported on a bi-weekly basis by the brokerage firms to the exchanges as the total number of shares short. Top 50 Shorted StocksД¬onsidering only stocks with a market cap above $250 million, the list below presents the top 50 stocks by short interest as a percentage of shares outstanding reported short. Without a clear signal that the operating environment has improved, sentiment remains and the short interest grows. That's the case with a number of retail and apparel type companies that are down significantly this year and the individual stocks with high short interest. Industry Themes: The group is also interesting to monitor because it can provide clues into broader themes in the market including sectors and industries that are undergoing major structural challenges. Across the universe of stocks down to micro-caps, there are always some that have dropped by catastrophic amounts over some time frame. The holy grail of short Selling is finding a stock that will eventually fall to zero and these types of situations do happen. In this case, if there is confidence in the long-term potential for any particular stock a long position against the short sellers may be appropriate.Д«earish Opportunities: In some cases, the bears are simply right and stocks with high short interest will have much more downside as the fundamentals deteriorate. On the other hand, stocks can climb more than 100% and often do in a relatively short periods of time for a variety of factors.

The limiting factor in short selling of course is that a stock can only go down to zero, essentially a gain of 99.99% as max potential profit on a short sale. With the same reasoning, stocks that have climbed significantly and show a trend higher in short interest may indicate growing skepticism of such rally that could lead to higher volatility and going forward.Д«ullish Opportunities: For contrarian type of investors there could be some gems in the group from companies that have been beaten down but are trading below intrinsic value. Market Timing: A stock that has declined significantly over some time frame while the data shows short interest declining, could indicate a near-term bottom as bears appear to have pared back speculative short bets. The perfect setup is a beaten down stock trading near long time lows and earnings that not only beat expectations but include positive guidance by management that may even invalidate any prior short thesis. Short Squeeze Potential: A large short interest in a stock going into an earnings release could indicate the possibility of a major short squeeze should the results come out better than expected, forcing the shorts to cover.

The following points are some of the angles to look at short interest data and how investors interpret the results. Generally, high short interest indicates some underlying weakness or at least valuation concerns that bears are attacking. The data can also be forward-looking if the trend in short interest for a particular stock is diverging from the price action which could indicate an inflection point. There are many ways to analyze short interest data, in some ways it's a backwards looking indicator as the stocks with the weakest operating and financial conditions already attract short sellers who often times exaggerate the declines. We closely follow high short interest stocks because the group often times presents good trading opportunities and contrarian investment ideas with potentially significant mispricing opportunities.

Micro cap stocks 2019