These stocks are now being dumped by the smart money even after making new highs for the year, making them potential targets for traders in search of good short-selling opportunities.
If you are a strong trend trader, this article probably won’t fit your trading style. However, if you think this market is about to top, this may be the perfect place for you to find some potential stocks to sell short. What better way to find those stocks than to follow the smart money?
Below are seven stocks that have reached 52-week highs but have also seen significant selling by mutual funds.
To compile this list, we focused on stocks with the following characteristics:
1) US companies with market cap above $300 million
2) Traded at its 52-week high during recent sessions
3) Experienced significant mutual fund selling over the current quarter
Charter Communications Inc. (CHTR) is in the CATV (cable) systems industry and has a market cap of $6.43 billion.
On a net basis, mutual funds sold 10.7 million shares over the current quarter. This is equivalent to 10.34% of the outstanding shares. The stock is exhibiting strong upside momentum, currently trading 7.18% above its 20-period simple moving average (SMA), 15.78% above its SMA50, and 45.96% above its SMA200. The stock has had a good month, gaining 14.04%.
RPC Inc. (RES) is in the oil and gas equipment and services industry and has a market cap of $3.88 billion.
On a net basis, mutual funds sold 2.8 million shares over the current quarter. This is equivalent to 6.61% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 27.3% (equivalent to 7.17 days of average volume).
It is exhibiting strong upside momentum, currently trading 10.1% above its SMA20, 22.04% above its SMA50, and 58.47% above its SMA200. The stock has gained 190.15% over the last year.
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