Bears Pile Into Chewy and Hertz

Short sellers are moving fast this week. Chewy saw the biggest jump among mid-to-large caps. Its SI % of FF leapt from 66% to 80% in just seven days. Shares to borrow are abundant at 381% availability, so bears aren't done yet.

Hertz tells a darker story. SI % FF hit 84%, up nearly 8 points on the week. Availability has dried up completely — zero shares left to borrow. That squeeze pressure is building.

Wolfspeed sits at 119% SI % FF with a cost to borrow of 5.9%. That's one of the tightest setups in semiconductors right now. The stock has surged 162% in three months. Short sellers are hurting.

On the retreat side, short interest in e.l.f. Beauty dropped 8 points to 12%. Bears are covering fast. CoreWeave also saw SI fall from 28% to 20% — AI infrastructure names are proving too risky to short.

The chip sector is the week's hottest topic. SK Hynix earnings disappointed. KLA raised guidance but still disappointed Wall Street. The Nasdaq 100 briefly fell into correction territory. All of that creates fertile ground for short sellers to reload.

Lucky Strike Entertainment stands out for a different reason — 47 days to cover, the longest of any mid-cap stock. That's a powder keg if sentiment shifts.

This is not financial advice.