Published on 19 Jul 2022 on Insider Monkey via Yahoo Finance

10 Most Shorted Stocks to Watch in July

In this article, we discuss the 10 most shorted stocks to watch in July. If you want to skip our analysis of the US stock market, go directly to the 5 Most Shorted Stocks to Watch in July.

According to data shared by S3 Partners, short sellers increased their bets against the US stock market by $20 billion in June 2022. Overall, short interest declined during June on the traders’ assessment that the bottom is near and there are not many opportunities to generate profits. The short interest declined by $73.5 billion MoM in June 2022 to $908.1 billion. In the last two years, shorting tech stocks has caused a loss of $36 billion to investors.

However, the overall bearish sentiment in the US stock market in 2022 has been a win for short-sellers. S3 Partners revealed that short-sellers had recorded a 30% gain this year as of June 30. Technology companies experiencing hyper-growth due to the pandemic took the market to an all-time high in 2021. However, the same has not been true in 2022 as concerns related to inflation and the rising interest rate dented the optimism in the equity markets. According to S3 Partners Research, traders generated a profit of more than $1 billion in June by shorting Tesla, Inc. (NASDAQ:TSLA), Amazon.com, Inc. (NASDAQ:AMZN), and Apple Inc (NASDAQ:AAPL).