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Notable ETF Inflow Detected - XLI, UNP, HON, GE
Thursday, October 11, 11:41 AM ET, by Market News Video Staff

Symbols mentioned in this story: XLI, UNP, HON, GE Exchange traded funds (ETFs) trade just ...

How The Parts Add Up: XLG Headed For $223
Monday, October 15, 7:44 AM ET, by Market News Video Staff

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

See How Verizon Communications Ranks Among Analysts' Top Dow 30 Picks
Monday, October 15, 11:46 AM ET, by Market News Video Staff

A study of analyst recommendations at the major brokerages shows that Verizon Communications Inc (VZ) ...

IVE, CVX, VZ, PG: Large Inflows Detected at ETF
Wednesday, October 17, 10:52 AM ET, by Market News Video Staff

Symbols mentioned in this story: IVE, CVX, VZ, PG Exchange traded funds (ETFs) trade just ...

Notable Thursday Option Activity: ATVI, GE, PM
Thursday, October 18, 2:35 PM ET, by Market News Video Staff

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume ...

General Electric Becomes #21 Most Shorted Dow Stock, Replacing Verizon Communications

By Market News Video Staff, Wednesday, February 28, 8:25 AM ET
Play Video: What Short Interest Means

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The most recent short interest data has been released for the 02/15/2018 settlement date, and we here at Dividend Channel like to sift through this fresh data and order the underlying components of the Dow Jones Industrial Average by "days to cover." There are a number of ways to look at short data, for example the total number of shares short; but one metric that we find particularly useful is the "days to cover" metric because it considers both the total shares short and the average daily volume of shares typically traded. The number of shares short is then compared to the average daily volume, in order to calculate the total number of trading days it would take to close out all of the open short positions if every share traded represented a short position being closed.

In our new rank based on the most recent short interest data, General Electric Co (NYSE:GE) has taken over the position of #21 most shorted Dow component, from Verizon Communications Inc (NYSE:VZ) which is now in the #16 spot. The "days to cover" at 02/15/2018 was 1.46 for GE, and 1.80 for VZ; this compares to the average across all Dow components of 1.95. The chart below shows the movement over time of the "days to cover" values of both GE and VZ, versus the average Dow component.

Below is a chart showing the relative positions of GE versus VZ over time within the 30 Dow components, with #1 representing the component with the highest "days to cover" value (most heavily shorted) and #30 representing the component with the lowest "days to cover" value (least heavily shorted):

A stock with a high "days to cover" value compared to its peers would be considered to have a higher level of short interest as compared to those peers. This could mean short sellers are using the stock to hedge a long bet elsewhere, or could also mean that short sellers believe the price of the stock will decline. When short sellers eventually cover their positions, by definition there must be buying activity because a share that is currently sold short must be purchased to be covered. So investors tend to keep an eye on that "days to cover" metric, because a high value could predict a sharper price increase should the company put out some unexpectedly good news short sellers might rush to cover positions, and if the "days to cover" number is high, it is more difficult to close those positions without sending the stock higher until the higher price produces enough sellers to generate the necessary volume.

Below is a three month price history chart comparing the stock performance of GE vs. VZ:

GE,VZ Relative Performance Chart

According to the ETF Finder at ETF Channel, GE and VZ collectively make up 11.51% of the First Trust Morningstar Dividend Leaders Index Fund ETF (FDL) which is lower by about 1.2% on the day Wednesday.

See what other ETFs contain both GE and VZ
See what other stocks are held by FDL

According to Preferred Stock Channel, there is a series of preferred stock that is senior to GE, which trades under the symbol GE.PRA more info .

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General Electric Becomes #21 Most Shorted Dow Stock, Replacing Verizon Communications | Market News Video | Copyright © 2008 - 2018, All Rights Reserved

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