So I was digging through some old short interest data from late last year and noticed something interesting about growth stocks that got absolutely hammered. There's this weird pattern where a bunch of them have massive short positions that are probably underwater right now. Like, if shorts piled in during the highs, they're sitting on some serious losses. AST SpaceMobile and Oklo are two that stand out - both got shorted hard when growth stocks were getting destroyed. The thing about heavily shorted growth stocks is that when shorts start losing money, they eventually have to cover, and that's when things get spicy. I went back through the short reports from around mid-December to see where shorts were actually added, then estimated their average entry price based on price action in the weeks before. The names on this list had significant short additions back then, and most of them are probably nursing some painful losses by now. Obviously this isn't an exact science - you're making assumptions about when and why shorts entered - but the pattern is worth watching if you're looking for potential squeezes. The whole rotation out of growth stocks created this weird opportunity where contrarian plays might actually make sense. Not saying go all in or anything, but keeping an eye on heavily shorted growth stocks when they're down could be worth it. That's usually when the real moves happen.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin