Long And Short Of Short Interest - Friday, Jan. 11

XLP (SPDR consumer staples ETF)

 

Shorts had a very good December, as XLP (51.48) dropped 9.7 percent in the month. Throughout this, they pretty much kept a low profile. This was maybe because bulls did step up to save 50, which is where the neck of a head-and-shoulders formation rests. Nearest resistance lies at 52.

XLU (SPDR utilities ETF)

 

Short interest jumped 26.2 percent in December. This can come in handy, if bulls had their way. After briefly losing the 200-day, they have recaptured the average. On the daily, XLU (53.43) just had a potentially bullish MACD crossover. In an ideal situation, the 50-day lies at 54.38, followed by horizontal resistance at 54.50-55.

XLV (SPDR healthcare ETF)

 

XLV (87.51) finds itself at an interesting juncture. Having dropped to 80.61 intraday on December 26, it tested the 200-day (87.71) Wednesday. A breakout opens the door to a test of 89, which was lost during last month’s selling. The 50-day is at 89.26.  Shorts likely appear at that level.

XLY (SPDR consumer discretionary ETF)

 

Short interest continues to drop, now 5.8 million. Kudos to bulls for recapturing 101-102. In the past three sessions, trading revolved around the 50-day (103.73). The 200-day lies at 108.09. In the event XLY (104.48) gets there, sellers are likely to appear. The daily would have been pushed into deep overbought territory by then.

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Disclaimer: This article is not intended to be, nor shall it be construed as, investment advice. Neither the information nor any opinion expressed here constitutes an offer to buy or sell any ...

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