“Tesla makes cars to covet, but investors have collectively bet nearly $9 billion that the stock will fall hard – the largest ‘short’ position in U.S. markets in terms of dollars at risk,” Crystal Kim reports for Barron’s. “While short sellers – who bet against stocks – aren’t always right, they shouldn’t be ignored. They tend to be pros, and they tend not to bet against a company without fairly high conviction that they are right, says Ihor Dusaniwsky, head of research at financial analytics firm S3 Partners.”

“That’s because short selling is risky, and primarily used by hedge funds to add to returns when stocks fall. We don’t recommend you try it at home,” Kim reports. “Still, changes in short positions can be useful indicators of where a stock is headed.”

Barron’s Next asked Dusaniwsky and Matthew Unterman, a director at S3, to analyze the short positions in the Next 50 index. Unterman notes that the index is roughly split between companies that are showing signs of improving and worsening investor sentiment,” Kim reports. ” The Nasdaq index is heavy on tech stocks. We asked Dusaniwsky to explain why investors are betting against Tesla, Amazon, Chipotle, Netflix, and Apple.”

Read more in the full article here.

MacDailyNews Take: When it comes to Apple, shorts should beware the gathering roar of the oncoming