Tech Stocks Too Hot to Hedge as Pre-Earnings Momentum Seized
- Short interest close to a three-month low for technology ETF
- Sector has rallied 15 percent since a low reached in February
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Just because technology companies are about to disclose their biggest profit contraction in seven years doesn’t mean investors are rushing to hedge their stocks.
Even with analysts estimating a 7 percent decline in earnings and the stocks up 16 percent to near a four-month high since mid-February, short interest in an exchange-traded fund tracking the technology group has tumbled and now sits close to the lowest level of 2016, according to data compiled by Bloomberg and Markit Ltd.