Friday, May 1, 2009

Short-Covering Rally Data Points

On March 9th I put together a portfolio of ten highly liquid stocks and ETFs that had extreme short interest positions. I posted about this portfolio the next morning in Short-Covering Driving Today’s Gains.

I thought this would be a good time to share the performance of these heavily shorted stocks and ETFs during the course of the past 7 ½ weeks. I have the graphics below from to show how the portfolio has performed. As a bond ETF, TLT probably should not be in the group, but since I included it in the original portfolio, I’m leaving it in here for now. For what it’s worth, removing TLT from the portfolio pushes the total return up to 116.60%. Clearly, a large part of the recent gains have come from short covering the likes of Deutsche Bank (DB), MGM Mirage (MGM), and shopping center REITs Macerich (MAC) and CBL & Associates (CBL).



Anonymous said...

Good for you. I want my money back. :)

Pankaj said...

Congrats Bill.. Nice gains.. Is this your real portfolio as well?


Bill Luby said...

The Finviz portfolio was not a real money portfolio I put together, but I did use it for idea generation as well as a short squeeze barometer.

I am generally very reticent about sharing specific trades I make (once in awhile I will mention something on Twitter), because I always envisioned the blog as more of a learning vehicle than something that might be construed as a source of stock tips.

In any event, 2009 is off to an excellent start for me, for both long and short positions.

Cheers and good trading,


Anonymous said...

after this huge rally the 200 day is 963 and the SPX is still a low 877.

what a rally yet we're still below the 200 day.

AE said...

COT data suggests the same

Bill Luby said...

Thanks for the heads up, AE. BTW, I checked out your blog and was very much impressed. It is definitely a candidate for my blogroll once I spend a little more time kicking the tires.

Nice work!


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