Why this matters — Three distinct ORTEX data points on HMC flipped direction simultaneously this week. Short interest, borrowing costs, and options sentiment all reversed course within two trading days, pointing to renewed bearish pressure after a brief unwinding.
Short interest rebounded sharply. After falling 23% over the past month to 1.81 million shares on April 22, short positions jumped back up 2.2% overnight to 1.85 million shares as of April 23. The reversal follows a steady decline that began in late March when shares shorted peaked at 2.48 million.
Cost to borrow spiked 147% in one week. Borrowing rates climbed to 2.16% APR on April 23, up from 0.87% on April 16. The jump signals tightening supply of shares available to short. Rates had briefly collapsed from a 14% peak in late March but have now stabilised above 2%.
Put-call ratio hit a 52-week high. Options traders pushed PCR to 1.06 on April 23, more than two standard deviations above the 20-day mean of 0.94. The reading marks the highest level in a year and suggests defensive positioning ahead of the May 14 earnings release.
Utilisation plunged to 11.46% on April 23, down from 47% the prior day. The sharp drop indicates a sudden influx of available shares to borrow, yet borrowing costs still rose – an unusual divergence that typically reflects increased shorting demand overwhelming new supply.
ORTEX short score fell to 30.77 on April 23, down from 43.55 the day before. The score now sits well below its recent 10-day average above 40, reflecting the mixed signals across short interest metrics.
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