11 Rallying Large-Caps With Bullish Short Trends

Short selling is a helpful indicator for the market’s sentiment surrounding a stock. When shorting increases, investors are generally more bearish about the stock, and when it decreases, investors are generally more bullish.

We ran a screen on large-cap stocks rallying above their 20-day, 50-day, and 200-day moving averages. From this universe, we searched for those that have seen significant decreases in shares shorted month-over-month.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

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We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

List sorted by decrease in shares shorted.

1. AutoZone Inc. (AZO): Auto Parts Stores Industry. Market cap of $12.34B. The stock is trading 1.30% above its 20-Day SMA, 2.81% above its 50-Day SMA, and 12.16% above its 200-Day SMA. Shares shorted have decreased from 1.50M to 1.11M month-over-month, a change representing 1.35% of the company's 28.94M share float. The stock has gained 44.88% over the last year.

2. Netflix, Inc. (NFLX): Music & Video Stores Industry. Market cap of $15.68B. The stock is trading 6.50% above its 20-Day SMA, 11.01% above its 50-Day SMA, and 34.78% above its 200-Day SMA. Shares shorted have decreased from 10.41M to 9.94M month-over-month, a change representing 0.92% of the company's 51.08M share float. The stock has had a good month, gaining 16.14%.

3. CF Industries Holdings, Inc. (CF): Agricultural Chemicals Industry. Market cap of $10.73B. The stock is trading 4.07% above its 20-Day SMA, 4.14% above its 50-Day SMA, and 13.20% above its 200-Day SMA. Shares shorted have decreased from 2.12M to 1.54M month-over-month, a change representing 0.81% of the company's 71.18M share float. The stock has had a couple of great days, gaining 5.01% over the last week.

4. Las Vegas Sands Corp. (LVS): Resorts & Casinos Industry. Market cap of $32.29B. The stock is trading 6.82% above its 20-Day SMA, 6.79% above its 50-Day SMA, and 1.05% above its 200-Day SMA. Shares shorted have decreased from 11.05M to 8.06M month-over-month, a change representing 0.75% of the company's 396.53M share float. The stock has had a good month, gaining 14.23%.

5. Kinder Morgan Energy Partners LP (KMP): Oil & Gas Pipelines Industry. Market cap of $24.05B. The stock is trading 1.28% above its 20-Day SMA, 0.45% above its 50-Day SMA, and 3.47% above its 200-Day SMA. Shares shorted have decreased from 4.48M to 3.00M month-over-month, a change representing 0.72% of the company's 205.14M share float. The stock has gained 13.93% over the last year.

6. Wynn Resorts Ltd. (WYNN): Resorts & Casinos Industry. Market cap of $19.51B. The stock is trading 10.80% above its 20-Day SMA, 10.85% above its 50-Day SMA, and 29.59% above its 200-Day SMA. Shares shorted have decreased from 3.29M to 2.76M month-over-month, a change representing 0.67% of the company's 78.67M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.54). The stock has had a good month, gaining 20.47%.

7. Priceline.com Incorporated (PCLN): General Entertainment Industry. Market cap of $26.43B. The stock is trading 3.13% above its 20-Day SMA, 2.31% above its 50-Day SMA, and 15.38% above its 200-Day SMA. Shares shorted have decreased from 3.59M to 3.27M month-over-month, a change representing 0.65% of the company's 49.15M share float. The stock has had a good month, gaining 10.4%.

8. Campbell Soup Co. (CPB): Processed & Packaged Goods Industry. Market cap of $10.99B. The stock is trading 0.40% above its 20-Day SMA, 0.32% above its 50-Day SMA, and 0.59% above its 200-Day SMA. Shares shorted have decreased from 18.18M to 17.18M month-over-month, a change representing 0.64% of the company's 156.28M share float. The stock is a short squeeze candidate, with a short float at 10.17% (equivalent to 7.75 days of average volume). The stock has lost 1.33% over the last year.

9. Kohl's Corp. (KSS): Department Stores Industry. Market cap of $15.68B. The stock is trading 7.94% above its 20-Day SMA, 6.72% above its 50-Day SMA, and 6.38% above its 200-Day SMA. Shares shorted have decreased from 10.34M to 8.76M month-over-month, a change representing 0.60% of the company's 263.03M share float. The stock has had a couple of great days, gaining 7.08% over the last week.

10. Bed Bath & Beyond, Inc. (BBBY): Home Furnishing Stores Industry. Market cap of $14.82B. The stock is trading 3.44% above its 20-Day SMA, 6.50% above its 50-Day SMA, and 18.86% above its 200-Day SMA. Shares shorted have decreased from 5.70M to 4.27M month-over-month, a change representing 0.60% of the company's 237.80M share float. The stock has had a good month, gaining 11.71%.

11. CIGNA Corporation (CI): Health Care Plans Industry. Market cap of $13.83B. The stock is trading 2.97% above its 20-Day SMA, 5.52% above its 50-Day SMA, and 23.32% above its 200-Day SMA. Shares shorted have decreased from 4.51M to 2.94M month-over-month, a change representing 0.58% of the company's 269.82M share float. Might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 12.82. The stock has gained 62.7% over the last year.

Short data sourced from Yahoo Finance; all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.