Many are calling today's rise a short covering rally, so we broke the Russell 1,000 into deciles based on a stock's short interest as a percentage of float to see how each decile is performing today on average. As shown in the chart below, the decile of the most heavily shorted stocks has gained the most today, up an average of 3.06%. As we work our way down the chain to the decile of the least shorted stocks, the average change on the day gets smaller. So yes, the most heavily shorted stocks are up the most today, but we wouldn't necessarily call it a short-covering rally. As our Bespoke Short Interest Index shows, the most heavily shorted stocks always outperform when the market rallies.
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