Displayed below are the 25 most overbought and 25 most oversold stocks in the market. What practical utility does this hold? When there’s a lot of money on a particular stock and the position isn’t going anywhere, it generally means its susceptible to a move in the other direction. For example, for heavily shorted stocks, the more they go up the more likely a “short squeeze” is to occur as shorts abandon their positions to cover losses, which in effect boosts demand for the shares as they’re being sold to the market. In fact, a simple strategy that has outperformed the market over the past few years has been to simply buy the most oversold shares. From 2014-17 YTD, this strategy has beaten the S&P 500 by over 40%. The 25 biggest long positions are calculated based on their weighting in active portfolios relative to their weighting in a standard equity benchmark (source: UBS): 1. GOOGL 2. BABA 3. AMZN 4. FB 5. V 6. AAPL 7. TCEHY 8. GOOG 9. MSFT 10. C 11. ARLUF 12. RIO 13. VOD 14. NABZY, NAUBF 15. ORCL 16. BAYZF, BAYRY 17. MA 18. BHP 19. GSK 20. CSLLY 21. ANZBY 22. LYG 23. RAI 24. NVDA 25. SHPG ______ The 25 biggest short positions: 1. TSLA 2. CBAUF, CMWAY 3. INTC 4. T 5. KMX 6. BAT 7. NFLX 8. EQT 9. DPZ 10. BXRBF, BXRBY 11. FSUMF, FSUGY 12. GM 13. GWW 14. HBI 15. AMD 16. CAT 17. ADSK 18. NWL 19. NVDA 20. CTL 21. GE 22. RYCEF, RYCEY 23. BUD 24. WYNN 25. ESRX