Top 5 Shorted Securities by Sector (IB)

Interactive Brokers – popular among the ‘smart money’ crowd – released the top 5 shorted stocks by sector as of today (April 15) and the top 5 largest short positions (4/11).   It seems the energy sector is ripe for a correction like we called 2 days ago (April 13) with our “Short Big Oil” call.

Other notable entries:   Blackberry ($BBRY) which has unsuccessfully been trying to put in a base, and a number of high profile banks such as Citigroup ($C) which has been trading well below its 200 day moving average.

Top 5 Shorted Securities as of 4/15:

Top 5 shorted stocks by Sector (source: IB)

Top 5 Largest Short Positions as of 4/11:

Top 5 outstanding short positions by Sector (source: IB)

IB’s posts can be found here and here.

5 things we know about Blackberry (closing short)

Here are 5 things we know about Blackberry:

  1. Prospects for the company as a stand-alone entity appear to be bleak, with shrinking market share and increasingly irrelevant operating system.
  2. Company buy-out seems to be Blackberry’s only hope to turn around their fortunes.
  3. Out of 293 institutional shareholders, 142 decreased their positions while only 115 increased their positions for a difference of about 8million shares or 15%.
  4. We are seeing a large number of Canadian Institutional and Retail traders alike bullish on Blackberry stock, but less enthusiasm for the stock outside of Canada.
  5. The last time we saw this much Canadian enthusiasm for a fledgling former Canadian success story was Nortel Networks.

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Closing out BBRY long.. going short

A relatively quick turnaround on the initial BBRY algorithmic buy signal:  The algorithm generated a long signal 2 days ago and suddenly went short this morning at the open as we notified our mailing list members immediately.  The average price for reversing the position was $10.16 for a loss on that last trade of $35.00 (0.39%), as per our tracking sheet below.  The algo is now short at $10.16.

It appears there is a fight between bears and bulls for the $10.00 handle, so some chop can be expected and the Market will decide where BBRY price goes from here.  Our algorithm works on probabilities, and right now it’s saying that based on past trading patterns, BBRY will weaken..  We’ve learned to listen to it over the years, but because this is a short call on a beaten down stock we are lowering our risk level on the trade which reduces the number of shares and thus the amount of capital that is exposed.

If you’d like to be notified of the next BBRY signal just send an email to our listbot at bbry_list@intellikon.com

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New algorithmic BUY signal on Blackberry BBRY

One of our analysts pulled an all-nighter last night and developed an algorithm on Blackberry (NASDAQ:BBRY – formerly Research In Motion) after picking up a clear trading pattern.   We’re really impressed with the algo’s accuracy and it generated a BUY signal yesterday.  We’re not really a fan of Blackberry (ever since they stopped producing the thumb wheel), but if there’s going to be a short squeeze in play then this algo should be able to call the upside.Continue reading