As reported last week, short interest on the New York Stock Exchange rose to a record high last month to 14.4 billion shares. Looking at the S&P 500 and its ten sectors, we calculated the percentage of each stock's float that was sold short. For the S&P 500 as a whole, the average stock in the index has 5% of its float sold short. Not surprisingly, the Consumer Discretionary and Financials have the highest percentage of their floats sold short (8.12% and 6.11% respectively). Sectors with the lowest short interest include Utilities and Industrials (3.10% and 3.27% respectively). Source : http://seekingalpha.com/article/67935-short-interest-by-sector-consumer-discretionary-leads
If you want to find some long term holds right now, discretionaries are the right play. Makes sure the companies have strong revenue, little debt, and most importantly, a product line in demand. I, personally, like electronics (computers and peripherals, HDTVs, digicams, laser printers and photog equip). I'll catch slack for it, but Circuit City is a screaming buy right now. 12.5 billion in revenue in 07, only 50 million in debt, and tremendous pressure to revamp their business model and store setup, which they are actually implementing right now. In fact, if you liquidated CC now, and did NOT include real estate value, accounts receivables, or goodwill, they have $2.88 of cash on hand, while their shares trade for about $1 more. And they have a guaranteed and real 3.5 billion line of credit, in case they ever need it. They will niche themselves into a more profitable position than Best Buy. Wait until you see their new store format (which I have).