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Komfie Manalo, Opalesque Asia:

Short sellers are becoming more aggressive and are expected to be more hostile in the coming months as they placed negative bets in the SPDR ETF and are tracking the Standard & Poor’s 500 Index to almost 11% of its shares, the highest proportion since 2012.

According to Live Trading News short sellers bet against technology ETFs are currently 67% above the 12-month average. Short sellers borrow stocks and return them once price falls and make profit.

The report said short selling peaked between 2011 and 2012 but with the U.S. valuations nearing levels not seen since 2007 and with the Federal Reserve planning to scale back on its stimulus program, the bears are back again.

Voice data service company Frontier Communications Corp., which is based in Connecticut, and Idaho-based chipmaker Micron Technology Inc. are the two companies with the highest negative bets. Shares of both companies jumped by more than 22% so far this year.

Short positions from hedge funds also rose by 7.8% this year, compared with a 5.5% gainer for the S&P 500, said Goldman Sachs.

Crispin Odey’s Odey Asset Management and Adelphi Capital shorted Coca-Cola’s bottling company, Coca-Cola Hellenic Bottling Co SA.......................

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