Weekly Short Position Updates
|Arrow Global Group plc||10.9%|
|JUPITER FUND MANAGEMENT PLC||10.5%|
|METRO BANK PLC||10.4%|
While Arrow’s share prices have declined substantially from its all-time high at 475p (currently trading at 200p), it appears its downtrend has turned lateral. Prices have been static for eight months. One reason behind Arrow’s loss of downward momentum is its improving fundamentals, e.g., 1Q profits up 14%. Therefore, I would be wary about shorting Arrow now. A further counter-trend rally – to 250p – is not to be ruled out.
Another stock carrying a large net-short position is Jupiter Asset Management. In comparison, JUP’s technical position is more precarious simply because prices have already rebounded significantly from its Dec-’18 lows at 280p. The slide from 400p may extend beneath its previous pivot support at 330p (see below).
NMC Health, in which AQR Capital Management has a 2.8% net-short position, looks equally vulnerable. Prices are encountering significant resistance at 3,000p once that level gave way (see below). A further decline from here may lure more momentum sellers into the stock.
Jackson has over 15 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world’s largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.