Searching for stocks that might pop in a rebound? Look at these high short interest candidates

Traders on the floor of the NYSE, May 11, 2022.
Source: NYSE

One corner of the market to hunt for stocks that have the potential to pop in any rally, however briefly, are those that have the highest short interest. At least some investors who have bet against these companies are likely to cover their short positions — buying back borrowed stock — if the market turns against them, even for a day or two, possibly creating a cascading tsunami of buying.