Recent and future interest rate hikes, higher cost basis of goods due to inflation, higher transportation costs due to rising fuel prices, margin shrinkage due to the inability to pass on the entirety of rising costs to consumers, and consumers allocating buying power from Consumer Discretionary to Consumer Staples has prompted, depending on the security, active long buying and selling and short selling and covering in both sectors.

According to our sentiment and market positioning data, the Consumer Discretionary and Staples sectors make up 19.0% of reported hedge fund long holdings. On the short side of the market, which is primarily driven by hedge fund activity, the Consumer Discretionary and Staples sectors make up 16.4% of total U.S. short interest. Total hedge fund long holdings in both sectors totals $398 billion versus total short interest in the sectors of $184 billion – a 2.05 to 1 ratio, which is 15% higher than the market average of 1.78 to 1. Hedge funds, the most active trading group in the market, have a net long bias in these sectors. Earnings underperformance or lower than expected future guidance could spur quick and substantive long and short selling in some of these securities.

Long/Short Market Positioning by Sector (as of 07.28.22)

Sector

Hedge Fund Long Holdings

Total Short Interest

Long\Short Ratio

Communication Services

$184,276,169,942

$69,744,850,877

2.64

Consumer Discretionary

$333,725,038,676

$150,105,786,524

2.22

Consumer Staples

$64,274,198,107

$44,207,893,017

1.45

Energy

$109,431,848,427

$67,245,471,995

1.63

Financials

$184,298,946,974

$113,009,051,676

1.63

Health Care

$311,863,664,986

$128,062,562,199

2.44

Industrials

$224,449,886,870

$91,376,148,678

2.46

Information Technology

$433,693,570,818

$182,801,548,447

2.37

Materials

$93,357,873,538

$38,150,247,581

2.45

Misc. (ETF & SPAC)

$61,942,172,009

$232,174,858,085

0.27

Real Estate

$59,037,195,925

$41,494,623,801

1.42

Utilities

$40,284,401,098

$25,014,818,908

1.61

Grand Total

$2,100,634,967,370

$1,183,387,861,788

1.78

The largest reported hedge fund longs in the Consumer Discretionary and Staples sectors are dominated by the top twenty holdings (making up 30% of the total hedge fund longs).

Largest Long Holdings: Consumer Discretionary and Staples (as of 07.28.22)

Name

Ticker

Reported Long Holdings

AMAZON.COM INC

AMZN

$33,482,910,603

TESLA INC

TSLA

$12,199,782,233

BOOKING HOLDINGS INC

BKNG

$6,754,752,805

EXPEDIA GROUP INC

EXPE

$6,352,239,298

LOWES COS INC

LOW

$5,383,015,574

JD.COM INC ADR

$4,845,520,265

DOLLAR TREE INC

DLTR

$4,400,992,146

HILTON WORLDWIDE

HLT

$4,369,429,471

DOORDASH INC

DASH

$4,283,588,063

BATH & BODY WORKS INC

BBWI

$4,282,949,263

AIRBNB INC

ABNB

$3,851,116,152

PROCTER & GAMBLE CO

$3,719,815,000

RIVIAN AUTOMOTIVE INC

RIVN

$3,668,669,642

CARVANA CO

CVNA

$3,542,002,699

HOME DEPOT INC

$3,540,075,634

COSTCO WHOLESALE

COST

$3,191,708,516

WAL-MART STORES

WMT

$3,161,038,021

ALIBABA GROUP ADR

BABA

$3,029,129,848

COUPANG INC

CPNG

$2,864,959,314

CHIPOTLE MEXICAN GRILL

CMG

$2,786,249,090

Total Cons Disc & Staples HF Holdings

397,999,236,783

We are seeing the same type of concentration in the short side of the market with 32% of all shorts in the Consumer Discretionary & Staples sectors in the top twenty most shorted stocks:

Most Shorted Stocks: Consumer Discretionary and Staples (as of 07.28.22)

Name

Ticker

SI % Float

S3 SI % Float

Fee

Short Interest

TESLA INC

TSLA

2.63%

2.56%

0.30%

$17,467,142,556

AMAZON.COM INC

AMZN

0.90%

0.30%

$9,205,044,907

ALIBABA GROUP ADR

BABA

1.70%

1.67%

0.30%

$4,609,389,981

LOWES COS INC

LOW

1.88%

1.85%

0.30%

$2,266,485,035

HOME DEPOT INC

0.74%

0.73%

0.30%

$2,252,427,269

LUCID GROUP INC

LCID

22.57%

18.41%

14.82%

$2,180,475,780

AIRBNB INC

ABNB

5.65%

5.35%

0.30%

$2,088,326,879

COCA COLA CO

0.76%

0.30%

$2,081,913,889

COSTCO WHOLESALE

COST

0.83%

0.30%

$1,885,175,058

GAMESTOP CORP

GME

22.29%

18.23%

36.57%

$1,846,539,294

WILLIAMS-SONOMA INC

WSM

20.15%

16.77%

0.30%

$1,825,675,380

PROCTER & GAMBLE CO

0.53%

0.52%

0.30%

$1,824,132,856

PEPSICO INC

PEP

0.76%

0.30%

$1,798,514,883

WAL-MART STORES

WMT

0.96%

0.30%

$1,670,044,403

RIVIAN AUTOMOTIVE INC

RIVN

10.62%

9.60%

0.57%

$1,640,682,821

CHIPOTLE MEXICAN GRILL

CMG

4.12%

3.96%

0.30%

$1,504,611,036

MCDONALDS CORP

MCD

0.79%

0.78%

0.30%

$1,499,118,784

NIKE INC B

NKE

1.11%

1.09%

0.30%

$1,428,230,337

FORD MOTOR CO

2.89%

2.81%

0.30%

$1,425,643,946

ETSY INC

ETSY

12.03%

10.73%

0.30%

$1,416,213,949

Total Sector Short Interest

6.29%

5.53%

1.72%

$ 194,313,679,549

We have seen an increase of +$3.21 billion in total short exposure in the Consumer Discretionary & Staples sectors over the last thirty days. The uptick is made up of a $12.95 billion increase in the prices of the stocks that were shorted as the market in these sectors rallied, partially offset by $9.74 billion of short covering. Short sellers were getting squeezed by the upward market trend and have been trimming their positions to lessen their short exposure as the value of their shorts were growing. The most shorted industry group was Retailing with $63.71 billion of short interest and we saw the largest short covering in the Automobiles & Components industry group, $4.1 billion of shares bought-to-cover and driving up stock prices along with long buying.

Change in Shares Shorted and Short Interest: Consumer Discretionary and Staples (as of 07.28.22)

Sector

7/26 Short Int

Change Short Int

Change Shs Shorted

Change MTM

Consumer Discretionary

$150,105,786,524

$2,590,922,556

($7,278,544,913)

$9,869,467,469

Consumer Staples

$44,207,893,017

$615,748,085

($2,460,263,801)

$3,076,011,886

Grand Total

$194,313,679,541

$3,206,670,641

($9,738,808,715)

$12,945,479,356

Industry Group

7/26 Short Int

Change Short Int

Change Shs Shorted

Change MTM

Automobiles & Components

$34,332,767,951

$299,816,162

($4,147,719,615)

$4,447,535,777

Consumer Durables & Apparel

$20,820,558,693

$1,599,591,609

$212,326,568

$1,387,265,041

Consumer Services

$31,245,055,938

$1,936,536,715

$403,418,885

$1,533,117,830

Food & Staples Retailing

$11,280,911,857

$284,454,636

($480,691,273)

$765,145,909

Food Beverage & Tobacco

$23,707,636,041

$465,023,737

($1,013,079,130)

$1,478,102,867

Household & Personal Products

$9,219,345,119

($133,730,288)

($966,493,398)

$832,763,110

Retailing

$63,707,403,942

($1,245,021,929)

($3,746,570,750)

$2,501,548,821

Grand Total

$194,313,679,541

$3,206,670,641

($9,738,808,715)

$12,945,479,356

We can break down the stocks with the largest increase in short selling and short covering over the last thirty days by industry group in order to provide insight into short side sentiment.

The Automobiles and Components industry group had $4.15 billion of short covering. Short selling was muted with no stock having an increase over $100 million, but E.V. stocks dominated short covering activity with Tesla, Lucid, Nio and Rivian topping the list of buy-to-covers.

Change in Shares Shorted and Short Interest: Auto and Components Individual Stocks (as of 07.28.22)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

LI AUTO INC ADR

$1,072,044,253

$105,580,991

$93,919,293

$11,661,698

LUMINAR TECHNOLOGIES INC

LAZR

$314,179,070

($1,002,956)

$57,665,438

($58,668,394)

AUTOLIV INC

ALV

$144,819,917

$67,959,713

$53,088,571

$14,871,142

MAGNA INTL

MGA

$235,039,933

$52,081,350

$33,975,553

$18,105,797

TENNECO INC

TEN

$214,724,633

$64,288,702

$32,281,058

$32,007,644

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

TESLA INC

TSLA

$17,467,142,556

($132,408,039)

($3,550,663,622)

$3,418,255,583

LUCID GROUP INC

LCID

$2,180,475,780

($19,577,107)

($212,726,669)

$193,149,562

NIO INC ADR

NIO

$1,104,884,136

($299,945,335)

($182,932,577)

($117,012,758)

RIVIAN AUTOMOTIVE INC

RIVN

$1,640,682,821

$163,426,967

($143,396,372)

$306,823,339

APTIV PLC

APTV

$398,739,258

($44,987,628)

($93,018,866)

$48,031,238

Grand Total

$34,332,767,951

$299,816,162

($4,147,719,615)

$4,447,535,777

There was net short selling of $212 million of new short selling in the Consumer Durables & Apparel industry group. Dr Horton Inc and VF Corp saw the most new short selling while Whirlpool Corp and NVR Inc had the most short covering.

Change in Shares Shorted and Short Interest: Consumer Durables & Apparel Individual Stocks (as of 07.28.22)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

DR HORTON INC

DHI

$1,032,662,425

$317,357,888

$144,083,159

$173,274,729

VF CORP

VFC

$817,863,800

$98,513,376

$104,494,845

($5,981,469)

GARMIN LTD

GRMN

$256,531,158

$82,948,114

$66,178,510

$16,769,604

LENNAR CORP A

LEN

$903,483,841

$231,448,162

$60,813,696

$170,634,466

NIKE INC B

NKE

$1,428,230,337

$27,944,550

$55,861,558

($27,917,008)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

WHIRLPOOL CORP

WHR

$1,106,685,334

($54,438,198)

($185,789,099)

$131,350,901

NVR INC

NVR

$252,440,798

($49,360,196)

($103,204,289)

$53,844,093

CAPRI HOLDINGS LTD

CPRI

$310,377,108

($67,409,246)

($76,727,976)

$9,318,730

DECKERS OUTDOOR CORP

DECK

$211,765,802

($49,239,093)

($76,005,886)

$26,766,793

HELEN OF TROY LTD

HELE

$237,558,522

($107,330,920)

($68,756,421)

($38,574,499)

Grand Total

$20,820,558,693

$1,599,591,609

$212,326,568

$1,387,265,041

The Consumer Services industry group saw increased short selling as consumers transition their purchasing activity in a higher inflation environment towards “necessities” instead of “luxuries”. Airbnb Inc, Starbucks Corp, and Las Vegas Sands saw the largest increase in short selling while Domino’s Pizza and McDonalds Corp saw the most short covering over the last thirty days.

Change in Shares Shorted and Short Interest: Consumer Services Individual Stocks (as of 07.28.22)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

AIRBNB INC

ABNB

$2,088,326,879

$546,304,069

$508,795,825

$37,508,244

STARBUCKS CORP

SBUX

$1,392,265,162

$309,891,808

$182,784,098

$127,107,710

LAS VEGAS SANDS

LVS

$834,528,387

$267,252,243

$149,928,002

$117,324,241

TAL EDUCATION GRP

TAL

$245,274,735

$111,931,277

$110,014,636

$1,916,641

FRONTDOOR INC

FTDR

$202,856,946

$122,688,660

$104,368,879

$18,319,781

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

DOMINOS PIZZA

DPZ

$701,060,565

($325,238,419)

($345,755,196)

$20,516,777

MCDONALDS CORP

MCD

$1,499,118,784

($99,820,404)

($254,747,910)

$154,927,506

EXPEDIA GROUP INC

EXPE

$694,971,028

($147,943,499)

($125,772,588)

($22,170,911)

BOOKING HOLDINGS INC

BKNG

$1,323,842,210

($205,258,728)

($116,192,750)

($89,065,978)

MARRIOTT INTL INC

MAR

$934,412,434

($69,514,892)

($109,677,515)

$40,162,623

Grand Total

$31,245,055,938

$1,936,536,715

$403,418,885

$1,533,117,830

The Food & staples Retailing Sector, as expected, had $481 million of net short covering. Supermarkets and retailers such as Kroger, Wal-Mart and Albertsons saw a slight increase in short selling as supply gluts and margin pressures have threatened future profits while discount and warehouse clubs BJ Wholesale and Costco Wholesale saw short covering with the potential of increased consumer activity as they look to stretch their purchasing dollars.

Change in Shares Shorted and Short Interest: Food & Staples Individual Stocks (as of 07.28.22)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

KROGER CO

$1,066,993,028

$88,072,482

$91,886,459

($3,813,977)

WAL-MART STORES

WMT

$1,670,044,403

$129,210,526

$81,144,951

$48,065,575

ALBERTSONS COMPANIES

ACI

$197,261,833

$8,482,193

$14,344,915

($5,862,722)

WEIS MKTS INC

WMK

$144,335,268

$13,859,473

$4,214,818

$9,644,655

WALGREENS BOOTS ALLIANCE

WBA

$1,061,925,006

($10,381,932)

$2,435,573

($12,817,505)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

BJS WHOLESALE CLUB HLDGS

$313,502,339

($161,394,563)

($240,680,558)

$79,285,995

COSTCO WHOLESALE

COST

$1,885,175,058

$54,436,730

($212,946,396)

$267,383,126

SYSCO CORP

SYY

$798,200,625

($53,675,775)

($133,812,936)

$80,137,161

PERFORMANCE FOOD GRP CO

PFGC

$302,177,710

($8,048,785)

($78,332,714)

$70,283,929

GROCERY OUTLET HLDG CORP

$311,694,117

($13,300,825)

($40,417,464)

$27,116,639

Grand Total

$11,280,911,857

$284,454,636

($480,691,273)

$765,145,909

The Food, Beverage & Tobacco industry group had the largest amount of short covering in the Consumer Discretionary and Staples sectors with $1.01 billion of net buy-to-covers. Monster Beverage, Keurig Dr Pepper and Coca-Cola had increased short selling while Mondelez, PepsiCo and JM Smucker had the largest amount of short covering. Short sellers will be picking and choosing the food and beverage manufacturers that can best manage inventories, cost pressures and transportation costs until inflation and recession pressures ease.

Change in Shares Shorted and Short Interest: Food Beverage and Tobacco Individual Stocks (as of 07.28.22)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

MONSTER BEVERAGE CORP

MNST

$687,838,244

$233,556,504

$193,500,113

$40,056,391

KEURIG DR PEPPER INC

KDP

$596,565,323

$195,308,697

$163,535,247

$31,773,450

COCA-COLA INC

$2,081,913,889

$273,501,398

$158,478,696

$115,022,702

ALTRIA GROUP INC

$900,800,513

$104,933,290

$125,484,264

($20,550,974)

CELSIUS HOLDINGS INC

CELH

$550,723,189

$260,010,317

$121,390,870

$138,619,447

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

MONDELEZ INTL

MDLZ

$733,973,237

($185,472,320)

($250,208,793)

$64,736,473

PEPSICO INC

PEP

$1,798,514,883

($57,802,418)

($232,371,414)

$174,568,996

JM SMUCKER CO

SJM

$640,226,730

($147,654,356)

($201,353,009)

$53,698,653

KELLOGG CO

$1,070,983,958

($91,551,520)

($183,982,902)

$92,431,382

CAMPBELL SOUP CO

CPB

$634,411,967

($105,473,030)

($164,318,256)

$58,845,226

Grand Total

$23,707,636,041

$465,023,737

($1,013,079,130)

$1,478,102,867

The Household & Personal Products industry group is the lightest shorted group in the two sectors. There were no stocks with over $100 million of increased short selling while we saw extensive short covering in Proctor & Gamble and Colgate-Palmolive, two of the more recession proof stocks in the sectors.

Change in Shares Shorted and Short Interest: Household & Personal Products Individual Stocks (as of 07.28.22)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

UNILEVER PLC ADR

$362,015,479

$74,090,586

$40,306,169

$33,784,417

OLAPLEX HOLDINGS INC

OLPX

$415,648,029

$103,189,058

$40,072,792

$63,116,266

HERBALIFE NUTRITION LTD

HLF

$161,647,127

$32,247,058

$32,024,722

$222,336

ESTEE LAUDER COS

$835,589,376

$69,231,717

$24,151,855

$45,079,862

VERU INC

VERU

$270,107,517

$13,157,046

$21,996,625

($8,839,579)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

PROCTER & GAMBLE CO

$1,824,132,856

($431,219,838)

($634,160,685)

$202,940,847

COLGATE-PALMOLIVE CO

$734,477,190

($213,532,406)

($271,022,453)

$57,490,047

CLOROX CO

CLX

$1,058,783,769

$132,662,047

($37,287,930)

$169,949,977

WD-40 CO

WDFC

$283,179,074

($44,610,503)

($36,934,270)

($7,676,233)

CHURCH & DWIGHT CO

CHD

$386,147,668

$20,520,151

($33,302,285)

$53,822,436

Grand Total

$9,219,345,119

($133,730,288)

($966,493,398)

$832,763,110

The Retailing industry group had by far the largest decrease in short interest with Amazon.com the major driver behind the change in short exposure in the group. Short sellers seem to expect Amazon to whether the inflation, logistics and recession storm and also latch onto a possible tech rally that should occur when markets bottom.

Change in Shares Shorted and Short Interest: Retailing Individual Stocks (as of 07.28.22)

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

ALIBABA GROUP ADR

BABA

$4,609,389,981

$459,735,248

$492,205,159

($32,469,911)

WILLIAMS-SONOMA INC

WSM

$1,825,675,380

$341,320,250

$156,244,168

$185,076,082

CARMAX INC

KMX

$1,196,639,230

$204,903,376

$145,392,385

$59,510,991

FLOOR & DÉCOR HLDGS

FND

$576,413,211

$181,260,194

$135,799,562

$45,460,632

PENSKE AUTO GROUP INC

PAG

$381,881,634

$137,234,421

$131,952,108

$5,282,313

Name

Ticker

7/25 Short Int

Change Short Int

Change Shs Shorted

Change MTM

AMAZON.COM INC

AMZN

$9,205,044,907

($2,310,149,896)

($3,241,382,464)

$931,232,568

HOME DEPOT INC

$2,252,427,269

($291,661,932)

($549,613,576)

$257,951,644

TARGET CORP

TGT

$976,900,993

($247,216,549)

($357,149,861)

$109,933,312

JD.COM ADR

$1,023,293,292

($366,309,473)

($318,164,413)

($48,145,060)

BEST BUY CO

BBY

$833,906,260

($168,635,535)

($189,963,187)

$21,327,652

Grand Total

$63,707,403,942

($1,245,021,929)

($3,746,570,750)

$2,501,548,821

Both the Consumer Discretionary Select Sector SPDR ETF (XLY) and the Consumer Staples Select Sector SPDR ETF (XLP) bottomed out on June 17th and rallied +7.35% and +14.46% respectively since then. This rally cut into Consumer Discretionary and Staples short-side year-to-date profits. Consumer Discretionary and Staples shorts are still up $70.90 billion in year-to-date profits, up +33.19% for the year even after incurring $13.43 billion of mark-to-market losses since the 17th, down -6.77%.

Most Profitable Shorts in Consumer Discretionary and Staples (since June 17)

Name

Ticker

Avg Fee

Avg Short Int

6/17 P\L

P\L %

KOHLS CORP

KSS

0.30%

$450,345,729

$193,651,209

43.00%

CARNIVAL CORP

CCL

0.30%

$1,231,315,372

$143,671,386

11.67%

DILLARDS INC

DDS

0.76%

$445,865,040

$110,828,041

24.86%

NIO INC ADR

NIO

0.30%

$1,382,945,211

$96,964,179

7.01%

MACYS

0.30%

$538,460,810

$85,216,812

15.83%

BOOKING HOLDINGS INC

BKNG

0.30%

$1,290,879,059

$72,105,818

5.59%

XPENG INC ADR

XPEV

0.30%

$571,952,906

$69,082,888

12.08%

LUMINAR TECHNOLOGIES INC

LAZR

2.76%

$311,030,921

$63,762,970

20.50%

ALIBABA GROUP ADR

BABA

0.30%

$4,820,856,179

$61,964,307

1.29%

ROYAL CARIBBEAN CRUISES

RCL

0.30%

$569,648,568

$61,751,596

10.84%

PINDUODUO INC ADR

PDD

0.30%

$1,097,497,797

$61,741,446

5.63%

PETCO HEALTH AND WELLNESS CO

WOOF

0.69%

$330,927,836

$57,052,767

17.24%

BED BATH & BEYOND

BBBY

1.81%

$142,846,080

$52,672,373

36.87%

BURLINGTON STORES

BURL

0.30%

$572,748,015

$52,662,898

9.19%

JD.COM INC ADR

0.50%

$1,143,941,467

$49,287,065

4.31%

NORDSTROM INC

JWN

0.31%

$490,473,433

$45,731,271

9.32%

WARBY PARKER INC

WRBY

8.26%

$272,997,071

$42,968,216

15.74%

PELOTON INTERACTIVE

PTON

0.30%

$334,629,757

$33,523,289

10.02%

HELEN OF TROY LTD

HELE

0.30%

$301,563,136

$33,100,809

10.98%

GROUPON INC

GRPN

1.02%

$76,450,225

$29,085,121

38.04%

Least Profitable Shorts in Consumer Discretionary and Staples (since June 17)

Name

Ticker

Avg Fee

Avg Short Int

6/17 P\L

P\L %

TESLA INC

TSLA

0.30%

$18,347,051,002

($3,151,855,172)

-17.18%

AMAZON.COM INC

AMZN

0.30%

$10,292,766,962

($805,091,184)

-7.82%

ETSY INC

ETSY

0.30%

$1,360,745,179

($348,628,048)

-25.62%

RIVIAN AUTOMOTIVE INC

RIVN

0.69%

$1,611,929,798

($306,891,983)

-19.04%

LUCID GROUP INC

LCID

16.81%

$2,454,619,111

($260,006,995)

-10.59%

COSTCO WHOLESALE

COST

0.30%

$1,873,058,034

($251,778,534)

-13.44%

COUPANG INC

CPNG

0.30%

$665,022,250

($236,716,413)

-35.60%

DICK'S SPORTING GOODS

DKS

0.62%

$1,164,980,396

($235,817,971)

-20.24%

HOME DEPOT INC

0.30%

$2,386,165,197

($228,702,966)

-9.58%

BEYOND MEAT INC

BYND

61.31%

$662,676,605

($214,428,838)

-32.36%

CHEWY INC

CHWY

0.70%

$778,999,590

($203,403,041)

-26.11%

LOWES COS INC

LOW

0.30%

$2,200,193,552

($197,334,996)

-8.97%

PROCTER & GAMBLE CO

0.30%

$2,070,030,601

($191,937,118)

-9.27%

WILLIAMS-SONOMA INC

WSM

0.30%

$1,637,275,422

($191,277,047)

-11.68%

DR HORTON INC

DHI

0.30%

$902,907,700

($182,336,480)

-20.19%

CLOROX CO

CLX

0.30%

$1,098,556,066

($176,154,254)

-16.04%

LENNAR CORP A

LEN

0.30%

$818,264,425

($174,977,419)

-21.38%

PEPSICO INC

PEP

0.30%

$1,847,461,838

($167,018,793)

-9.04%

CELCIUS HOLDINGS

CELH

0.30%

$435,871,635

($156,049,974)

-35.80%

FORD MOTOR CO

0.30%

$1,369,379,727

($150,856,423)

-11.02%

The Consumer Discretionary and Staples sectors are slightly more crowded than the overall market with an average Crowded Score of 35.72 vs a 32.22 average for the entire short side of the market. The most crowded stocks in the sector are:

Most Crowded Consumer Discretionary and Staples Shorts (as of 07.28.22)

Name

Ticker

Short Interest

S3 Crowded Score

BEYOND MEAT INC

BYND

$ 627,359,251

100.00

LUCID GROUP INC

LCID

$2,180,475,780

95.00

FISKER INC

FSR

$ 475,894,020

95.00

DUTCH BROS INC

BROS

$ 283,219,619

95.00

VUZIX CORP

VUZI

$ 120,233,854

92.50

BIG 5 SPORTING GOODS

BGFV

$ 95,856,913

92.50

GAMESTOP CORP

GME

$ 1,846,539,294

90.00

CAMPING WORLD HLDGS INC

CWH

$ 264,892,863

90.00

WARBY PARKER INC

WRBY

$ 253,638,656

90.00

EVGO INC

EVGO

$ 164,055,279

90.00

TATTOOED CHEF INC

TTCF

$ 92,674,646

90.00

WEBER INC

WEBR

$ 56,272,531

90.00

PORTILLOS INC

PTLO

$ 99,349,182

85.00

LUMINAR TECHNOLOGIES INC

LAZR

$ 314,179,070

82.50

LORDSTOWN MOTORS CORP

RIDE

$ 100,987,769

82.50

APPHARVEST INC

APPH

$ 55,986,920

82.50

DICK'S SPORTING GOODS

DKS

$ 1,118,148,281

80.00

WAYFAIR INC

$ 967,665,961

80.00

QUANTUMSCAPE CORP

$ 493,396,191

80.00

Short side profitability in Consumer Discretionary and Staples stocks have made them inherently less squeezable because it is difficult to knock profitable short sellers out of their positions. It would be more interesting to look for less crowded shorts that are already experiencing recent mark-to-market losses where a strong rally may push them into the “Squeeze Zone”. Stocks which will be more susceptible to a squeeze if the sectors rally are below.

Consumer Discretionary and Staples Stocks Most at Risk of a Short Squeeze (as of 07.28.22)

Name

Ticker

S3 Crowded Score

Short Interest

CELCIUS HOLDINGS

CELH

60.00

$ 550,723,189

LGI HOMES

LGIH

55.00

$ 299,814,471

ETSY INC

ETSY

47.50

$ 1,416,213,949

TAL EDUCATION GROUP ADR

TAL

42.50

$ 245,274,735

LCI INDUSTRIES

LCII

40.00

$ 232,950,994

BATH BODY WORKS INC

BBWI

37.50

$ 599,346,254

H&R BLOCK INC

HRB

35.00

$ 364,683,771

EDGEWELL PERSONAL CARE CO

EPC

35.00

$ 115,248,085

LAS VEGAS SANDS

LVS

32.50

$ 834,528,387

COUPANG INC

CPNG

32.50

$ 814,560,097

CENTURY COMMUNITIES INC

CCS

32.50

$ 108,013,160

BRUNSWICK CORP

27.50

$ 257,925,194

TOPBUILD CORP

BLD

25.00

$ 234,852,218

NEW ORIENTAL EDUC TECH ADR

EDU

22.50

$ 265,802,620

CROCS INC

CROX

22.50

$ 199,066,918

INSTALLED BUILDING PRODUCTS

IBP

22.50

$ 104,712,474

SKYLINE CORP

SKY

22.50

$ 103,624,670

The Consumer Discretionary and Staples sectors look to be very volatile in this inflation laden, interest rate fluid and recession possible environment for both the long and short side of the market. Increased visibility into the actual trading activity, portfolio construction & management and sentiment for both the long and short side is imperative in reducing risk and growing alpha.

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Market Positioning in Consumer Discretionary and Staples

Long/Short Market Positioning by Sector (as of 07.28.22)

Largest Long Holdings: Consumer Discretionary and Staples (as of 07.28.22)

Most Shorted Stocks: Consumer Discretionary and Staples (as of 07.28.22)

Change in Shares Shorted and Short Interest: Consumer Discretionary and Staples (as of 07.28.22)

Change in Shares Shorted and Short Interest: Auto and Components Individual Stocks (as of 07.28.22)

Change in Shares Shorted and Short Interest: Consumer Durables & Apparel Individual Stocks (as of 07.28.22)

Change in Shares Shorted and Short Interest: Consumer Services Individual Stocks (as of 07.28.22)

Change in Shares Shorted and Short Interest: Food & Staples Individual Stocks (as of 07.28.22)

Change in Shares Shorted and Short Interest: Food Beverage and Tobacco Individual Stocks (as of 07.28.22)

Change in Shares Shorted and Short Interest: Household & Personal Products Individual Stocks (as of 07.28.22)

Change in Shares Shorted and Short Interest: Retailing Individual Stocks (as of 07.28.22)

Most Profitable Shorts in Consumer Discretionary and Staples (since June 17)

Least Profitable Shorts in Consumer Discretionary and Staples (since June 17)

Most Crowded Consumer Discretionary and Staples Shorts (as of 07.28.22)

Consumer Discretionary and Staples Stocks Most at Risk of a Short Squeeze (as of 07.28.22)

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