Citi's New Model Screens These U.S. Stocks With the Most Crowded Short Positions
Citi has introduced a new Short Stock Crowding Model aimed at helping investors identify profitable opportunities, working in tandem with Citi's existing crowding model that concentrates on long positions.
Chris Montagu of Citi: "Over the past 20 years, there has been a change in the characteristics of the 'marginal investor' within equity markets; The traditional longer-term, long-only investor has become less dominant, with the rise of leveraged shorter-term long/short investors together with ETF and Index funds."
As it is a challenge to define the meaning of "crowding," Citi uses multiple factors to rank stocks based on their level of crowding in its new model, including historical relative valuation (cheap), short interest ratio (high), consensus ratings (Sell), macro exposure (concentrated) and historical price momentum (low). All screened companies have a market capitalization of over $15 billion.
As short positions become too concentrated in the stock market, a large number of bearish positions may be compelled to "short-covering" if long forces keep pushing up the underlying stock. In another situation, the overabundance of short positions can make stocks less susceptible to upward movements in the short term, so bullish investors need to remain vigilant.
![Citi's New Model Screens These U.S. Stocks With the Most Crowded Short Positions](https://ussnsimg.moomoo.com/feed_image/71445112/0141cc44563738c4a95d5ced0362aaac.jpg/bigmoo)
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Mouth Breather :
There "New Model" must be broke because I don't see AMC/GME/HYMC on this list. ![thinking_face 🤔](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f914.png)
Packy Packrat Mouth Breather : It getting comical how all the media hit pieces don’t talk about the real issues. Stuff like fraud, counterfeit or naked shares, dark pools, crooked regulation - just to name a few of the real newsworthy pieces that could be written about.