Click to Enlarge Consumer discretionary stocks have been on the rise as the economy continues to show improvements and consumer sentiment is near its recent highs.
Harley-Davidson (HOG) shares are among those that have been leading the discretionary stocks higher, returning almost 20% during the past three months while the S&P 500 has gained about 5%.
But the shorts are trying to call a top on this outperformer, as short interest rose almost 30% during the past two weeks, driving the short interest ratio to more than seven times the average daily volume for the shares.
A short squeeze rally is likely to help HOG head toward its all-time highs just above $75.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.