Thursday August 27, 03:10 PM
STOCKS NEWS US-Short bets, inside selling may signal dip-report
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Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
0940 ET 27Aug2009-Short bets, insider selling may signal pullback-Jefferies
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While short interest in S&P 500 companies remained below the historical
average in the first half of August, bearish bets were above average in the
healthcare, industrial, financial and materials sectors, according to a
research report from Jefferies Equity Strategy.
Investors who sell securities short seek to profit from bets the stocks
will fall. Short-sellers borrow the shares and then sell them with the hope of
buying back the share at a lower price, pocketing the difference.
As well, insider selling continues to accelerate for a number of sectors,
while insider buying remains 'virtually nonexistent', the report said.
'The combination of generally low levels of short interest and the
increasing pace of insider selling continues to point to a rally that may be
readying for a pullback over the coming weeks,' Jefferies analysts wrote.
The most significant decrease in short interest occurred in the information
technology sector, where it fell 19 percent, while short interest in financials
rose 15 percent.
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