The Short Report – 01 Sep 2022

Weekly Reports | Sep 01 2022

See Guide further below (for readers with full access).

Summary:

By Greg Peel

Week Ending August 25, 2022.

Last week opened badly for the ASX200 after a steady rally, as Wall Street responded in shock to a German PPI printing an annual growth rate of 37.2%. Bond rates across the world jumped, and the US ten-year hit 3%.

But late in the week Wall Street settled, allowing the local market to focus on corporate earnings results. A comeback rally ensued. This week again began badly following Jerome Powell’s speech at Jackson Hole, and another big fall is underway today.

Last week was the busiest in the reporting season. However, despite some solid share price moves up and down in response, there were no meaningful changes in short positions.

We can nevertheless note the list of stocks shorted by 5% or more remains long, and right now, as earnings season winds up, global stock market sentiment remains fragile.

We shall thus see how the shorters fare in coming weeks.

Weekly short positions as a percentage of market cap:

10%+
FLT     15.8
BET     12.8
DEG    10.8
SQ2     10.6
NAN   10.3
LKE    10.0


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