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3 shortest actions that move and what to do with them


In a bag of mixed performance on Wall Street this week, the market’s top-selling short stocks are making similar, but more powerful, price statements.

Today, let’s take a look at some of the drivers off and on the price chart of these vilified companies, and then determine which of the bulls and bears are overreacting and which are on to something more important in the future.

It has been an interesting five-day period for investors with a fairly wide divergence in the larger market barometers. The same goes for back alleys like the shortest stocks in the market.

Within the Friday session, the price spread hedged for about 15 seconds on the evening news is best reflected by the Invesco Trust QQQ (NASDAQ:QQQ) and first-rate SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA).

For investors keen on gadgets and growth, new highs thanks to gains above 2.5% are recorded this week. Alternatively, the more cyclical and value-driven Dow Jones is at a full percentage point.

Likewise, the best-selling stocks on the market, worthy of a podium, are here, there and everywhere, but in an even more dramatic way:

  • The 5 big sporting goods (NASDAQ:BGFV)
  • Beyond meat (NASDAQ:PARND)
  • Flashing charge (NASDAQ:BLNK)

Today, let’s take a look at three of these best-selling short stocks, the reports that drive bulls and bears to beat, and how long play shows up on these price charts.

The most out of stock stocks are moving: the 5 big sporting goods (BGFV)

3 shortest actions that move and what to do with them

Source: Charts by TradingView

The first of our shortest stocks to move this week is Big 5 Sporting Goods. The nearly $ 600 million athletics and outdoor retailer ranks first among small caps with a high short-term interest of 41.7%.

And the bears came out to play for the five-day period with shares of BGFV at 39%. Behind the pressure of the BGFV? You may need to chalk it until the beaver full moon.

Investors would be hard pressed to find a real story worthy of the carnage of this most short-circuited stock. In fact, the only element that can only account for a small part of the loss is a real benefit to the shareholders.

This week, BGFV was ex-dividend on a regular quarterly dividend of 25 cents and a special one-time thank you to investors of $ 1 per share.

Going forward, the biggest thanks are the bears snapping this shortest action in the long term trend and Fibonacci support.

Along with stochastics flirting with oversold readings on the monthly chart, BGFV presents itself as a value proposition and a domain to start accumulating stocks in the uptrend.

Beyond Meat (BYND)

3 shortest actions that move and what to do with them

Source: Charts by TradingView

Beyond Meat is the next of our shortest actions to make a bigger move this week. As with BGFV stocks, BYND stocks are in the red, but it’s the bear ball to drop. And I doubt they will.

This shorter 9% share’s more modest follow-up drop follows the nearly 15% drop the week before in response to a mostly gruesome earnings report.

It’s important to note that the latest price drop is also a warning that there’s a lot more to come.

The pullback indicates that BYND’s slightly growing resident bear population of 30.4% is on the right side of a neckline failure now confirmed on the monthly outlook.

As proposed a week ago, this most shorted stock could be a continuing downtrend towards $ 45- $ 50.

This finding now appears more and more probable given the failure of this week. And in its wake, this should be a growing opportunity for bears to profitably venture into Beyond Meat stocks.

Shortest actions performing movements: Blink Charging (BLNK)

3 shortest actions that move and what to do with them

Source: Charts by TradingView

The last of our more short-circuited stocks that explodes a bigger move are Blink Charging stocks. Shares of the $ 1.83 billion electric vehicle charging game were up about 9% from the massive 27% gain the week before.

But this heavily shortened name seems loaded with even higher potency despite and with the help of its 36% short interest.

On Monday, helping with the follow-up, boutique investment firm HC Wainwright revised BLNK’s stock to “buy” and set a target above-market price of $ 50 on the shares.

According to who is asked, blame or thank President Joe Biden’s infrastructure bill, which allocates about $ 7.5 billion to build electric vehicle charging networks and offers tax breaks for purchases of electric vehicles to start the action.

Technically, this most short-circuited security is offering to buy shares as they move to the right side of BLNK’s one-year correction base after a failed first attempt in the spring.

Today, with stocks squarely in the base midline and an oversold stochastic just signaling a bullish cross, it’s gone for the bullish Blink Charging fan base.

As of the publication date, Chris Tyler does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

Chris Tyler is a former ground-based derivatives market maker on the US and Pacific stock exchanges. For additional market information and related thoughts, follow Chris on Twitter. @Options_CAT and StockTwits.




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