The chart below tells us which companies the market is most concerned about the price falling. This is called “Shorting a stock”. It happens when an investor sells a PUT option over a company. They hope to make a profit by buying it back at a lower price on the back of bad news.
As we are coming into reporting season, the shorts allow us to speculate which companies may come in below expectations. As you can see at present JB Hi-Fi is the company which is being shorted the most. Myers, David Jones, Treasury Group and Harvey Norman are also in this list.
I expect we will see disappointing figures in the retail sales sector, especially in the discretionary spend sector.
Reporting season starts in February. So, expect to see some volatility in the market in the coming months.
This will be a great opportunity to buy quality companies at a discount.
Coming up this week
Consumer Prices fourth Quarter - AUS
New House sales – USA
House price index – USA
GDP fourth quarter - UK
CPI December - Japan