The management of John Wood (WOOD) must be eyeing their share price nervously.
At the last count, this stock is by far the most shorted one in terms of funds – 11. And nearly 10% net short.
Looking at WOOD’s chart, it is clear this is having an impact on its share trend. The stock peaked in this cycle in 2017. Each subsequent rally was lower than the one before. In the absence of buyers, the latest market rout kicked prices into new multi-year lows. As prices slip beneath the round number 400p level, I expect a further decline here.
Meanwhile, Cineworld (CINE) is undermined by a growing number of funds bearish on the stock. Perhaps this is due to the number of new entrants in the streaming sector which may reduce customer numbers going to the cinema. With multiple funds bearish on the stock, it is not surprisingly that CINE’s stock is on the brink of a major breakdown below the 210-200p support (see below).
Since losing its FTSE100 seat, the century-old retailer Marks & Spencer (MKS) has not been able to arrest its price decline. The breakdown beneath 240p and 200p without any meaningful rebound shows you how weak the stock is trading at the moment. Six funds are holding net short positions here.
However, I observe three pivot lows near 180p. Some tentative support is emerging. Hence I would not rule out a counter-trend rebound into the year-end.
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Jackson has over 10 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 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.