Investors continue to be rewarded for owning Real Estate stocks.
Over 90% of Real Estate stocks in the S&P 500 are above their 50-day and 200-day moving averages.
Earlier this month, we wrote about the best setups in the Real Estate Sector, and 9 out of the 10 trade ideas have been profitable.
The market's message could not be clearer... buy more real estate!
Because of this, we were extra excited about a new name on our Freshly Squeezed list this week.
Short sellers have piled into Douglas Emmett $DEI, a $2.7B Office REIT company, and we're betting they're about to be forced to unwind their positions, causing an epic squeeze.
Before we get into it, let's talk about what we're doing here.
Our scan is quite simple. It is designed to identify stocks with the most aggressive short positions.
When a stock is shorted, it means incremental buyers are waiting in the wings to close out their bearish bets.
We love this, as new buyers are the one true catalyst for higher prices.
When shorts are proven wrong, they become buyers of the stock. In many cases, this happens as momentum flows into these names and fuels massive short-covering rallies.
For this reason, we pair short-interest data with short-term momentum overlays, as this combination is needed to spark the moves we’re looking for.
Here's the latest:
*Click table to enlarge view
Our Freshly Squeezed table contains stocks that have a short interest greater than 12% and a market capitalization larger than $500M. The universe is then sorted by 10-day stock price performance.
At the top of our list is Peloton $PTON, which we discussed on Friday.
We also have tables of our universe sorted by highest short interest and days-to-cover.
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