US equity markets have rallied significantly since the election on November 8th. While the large-cap, market-cap weighted S&P 500 is up roughly 3 percentage points, the average stock in the S&P 1500 - which contains large-caps, mid-caps, and small-caps - is up 10% since Trump's victory.
Areas of the market with heavy short interest typically do well when the market is in rally mode, so we thought it was a good time to provide some updated short interest analysis. (Click here to see our list of the 5 most shorted stocks in each sector.)
The chart below highlights the average stock's short interest as a percentage of float ((SIPF)) within each sector of the S&P 1500. As shown, the average stock in the broad index has 6.3% of its float sold short. By far the most heavily shorted sector remains Energy, where the average stock has 10.3% of its… Read More …