The fight against inflation: Short sellers take aim at these stocks
The biggest jump in inflation in 40 years has driven short sellers to increase their bets against consumer discretionary stocks to the highest level in over a year, according to S&P Global Market Intelligence.
Short interest in consumer discretionary stocks reached 4.83% at the end of January, the highest level for the sector since mid-January 2021, the data shows.
Three of the 10 most-shorted stocks at the end of January were consumer discretionary stocks — $EVgo Inc (EVGO.US)$ , $Big 5 Sporting Goods (BGFV.US)$ and $Citi Trends (CTRN.US)$.
While short selling in the consumer discretionary sector continued to lead all sectors, short interest in the energy companies grew to 3.38%, the highest level since January 2021. Short interest in healthcare was 4.04%, the highest since mid-October 2021.
The University of Michigan's consumer sentiment index fell to 67.2 in January, the lowest level since 2011. Consumers also cut retail spending in December amid concerns over soaring inflation and rising omicron cases.
$Consumer Discretionary Select Sector SPDR Fund (XLY.US)$ $Energy Select Sector SPDR Fund (XLE.US)$ $The Health Care Select Sector SPDR® Fund (XLV.US)$ $ProShares UltraPro Short Dow30 ETF (SDOW.US)$ $Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$
$Consumer Discretionary Select Sector SPDR Fund (XLY.US)$ $Energy Select Sector SPDR Fund (XLE.US)$ $The Health Care Select Sector SPDR® Fund (XLV.US)$ $ProShares UltraPro Short Dow30 ETF (SDOW.US)$ $Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$
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![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Molly wealth talk OP :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
What's your opinion? Welcome to discuss with Molly~
Peanny : And AMC