At the start of each week I like to look at ASIC’s short position report in order to find out which shares are being targeted by short sellers.

This is because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the ASX with short interest of 14%. Short sellers may regret not closing their positions sooner. The Myer share price rocketed 52% higher last week amid optimism that stores will reopen soon.  
• Galaxy Resources Limited (ASX: GXY) has seen its short interest fall week on week to 13.4%. The lithium miner has been one of the most shorted shares for some time due to concerns over supply outstripping demand for the battery making ingredient.
• Speedcast International Ltd (ASX: SDA) has short interest of 13.2%. Things look very bleak for the communications satellite technology provider. Last month it revealed plans to declare itself bankrupt after failing in its efforts to recapitalise.
• Orocobre Limited (ASX: ORE) has seen its short interest drop lower again to 11.9%. As with Galaxy, short sellers have been targeting Orocobre due to a collapse in the price of lithium. In addition to this, Orocobre recently advised that its development plans at its Argentine operation have been delayed by the pandemic.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest reduce week on week to 10.2%. Unfortunately for short sellers, last week the retailer released an update which revealed that its sales were very strong during the third quarter.
• Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.5%, which is down slightly week on week. As with the other lithium miners, short sellers have been going after Pilbara Minerals due to weak lithium prices and concerns that a recovery could be delayed because of the pandemic.
• Zip Co Ltd (ASX: Z1P) has seen its short interest remain flat at 9.4%. As with Myer, short sellers may be regretting this one. Last week the buy now pay later provider’s shares jumped 50% higher after positive industry news and a strong April update.
• Inghams Group Ltd (ASX: ING) has short interest of 9.3%, which is down sharply week on week. With the country on the verge of reopening, short sellers may believe the worst is behind the poultry company.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest slide to 9.3%. The biopharmaceutical company’s shares trade at a significant premium to the market average. Short sellers may believe Clinuvel won’t be able to deliver the level of growth that justifies this.
• Super Retail Group Ltd (ASX: SUL) has seen its short interest fall to 8.8%. Short sellers may be concerned that some of the retailer’s brands, such as Macpac, will not fare well during the coronavirus crisis.

More reading

• 3 top ASX growth shares to buy with $3,000 after the market crash
• Top broker urging you to buy this ASX 200 retail stock next week
• These are the star ASX shares of the week
• ASX shares and investing trends that could boom post COVID-19
• These were the worst performing ASX 200 shares last week

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a high. The benchmark index climbed 0.5% to 5,391.1 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge higher.

The ASX 200 looks set to continue its positive form on Monday. Current SPI futures are pointing to a 3 point gain at the open. This follows a strong end to the week on Wall Street despite record U.S. job losses. On Friday the Dow Jones rose 1.9%, the S&P 500 climbed 1.7%, and the Nasdaq index pushed 1.6% higher.

Oil prices jump.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices jumped higher on Friday night. According to Bloomberg, the WTI crude oil price rose 5% to US$24.74 a barrel and the Brent crude oil price jumped 5.15% to US$30.97 a barrel.

Gold price drops lower.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled lower. According to CNBC, the spot gold price fell 0.7% to US$1,713.90 an ounce after improving investor sentiment led to a switch to risk on assets.

Macquarie rated as neutral.

The Macquarie Group Ltd (ASX: MQG) share price could be close to peaking according to analysts at Goldman Sachs. Following the release of its full year results last week, the broker has retained its neutral rating and put a $127.32 price target on the investment bank’s shares. It notes that Macquarie has a strong balance sheet, but expects a lot of uncertainty in FY 2021.

GrainCorp on watch.

The Graincorp Ltd (ASX: GNC) share price will be on watch this morning after China threatened to slap an 80% import tax on Australian barley. China claims that the Australian government is subsidising farmers and allowing them to dump barley into China at cheaper prices than those offered by Chinese farmers.

Returns as of 7/4/2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More reading

• Which is the cheapest ASX bank stock on the market?
• 3 ASX 200 shares to buy before the market rebounds
• 2 bargain ASX shares to buy with $2,000
• 3 ASX shares to buy as a beginner
• Top brokers name 3 ASX 200 shares to sell next week

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