Short interest in S&P 500 consumer discretionary stocks declined slightly in October

Average short interest across the S&P 500 consumer discretionary stocks have declined to 2.32% of shares float in end-October, from 2.39% a month earlier.

Consumer Discretionary Select Sector SPDR Fund (XLY) has been up 20.36% so far this year, as compared to the 23.61% rise in the S&P500 index over the same period.

Stocks with the largest and least short positions

Carmax (KMX) was the most shorted stock at 10.05% of shares float, followed by Aptiv (APTV) with short interest of 9.74% and Pool (POOL) with 8.55%, respectively.

Amazon.com (AMZN) was the least shorted stock, with 76.62M shares sold short or 0.82% of the shares float, followed by Home Depot (HD) and TJX Cos (TJX) with short interest of 1.07% and 1.15%, respectively.

Industry Analysis

Average short interest as a percentage of floating shares

Automobile Components was the most shorted industry within the sector, with 6.71% short interest as of the end of October, marginally down from 7.23% at the end of September.

Hotel, Restaurants & Leisure stocks took the second spot with 3.47% short interest as of October end, compared to 3.65% a month ago.

Bets against the Automobile and Leisure Equipment & Products sector as a whole, however, have increased to 2.75% and 3.25% respectively, at the end of October, compared to 2.72% and 2.65% at September-end.

What Quantitative Measures say

Seeking Alpha’s Quant Rating system gives Consumer Discretionary Select Sector SPDR Fund (XLY) a Hold rating, with 4.33 score.

The ETF has a strong liquidity grade of A+ and momentum grade of also A+. Notably, the ratings’ system sees risk as a threat and assigns the ETF a grade of D in this category.