Core Insights - The recent resurgence of meme stocks indicates that the driving factors behind this phenomenon have never truly faded since the initial explosion in 2021 [1] - Several heavily shorted stocks, including Opendoor Technologies, Kohl's, and Krispy Kreme, experienced significant price increases last week, with Opendoor's stock soaring over 120% [1] - The Leuthold Group's analysis suggests that the behavior of retail investors has permanently changed due to easier access to markets and online platforms [2] Group 1 - The performance gap of the 50 most shorted stocks has reached +10% or more in five months since early 2021, indicating a persistent trend [1] - The short interest percentages for Opendoor, Kohl's, and Krispy Kreme are 21.9%, 46.3%, and 27.5% respectively, highlighting the significant short positions in these stocks [2] - The term "diamond hands" refers to investors who hold onto their positions despite risks, while "jelly hands" describes those who may sell under pressure [2] Group 2 - The Leuthold Group does not engage in shorting stocks with excessively high short positions, emphasizing a cautious approach in volatile markets [3] - Historical data shows that prior to 2020, only two months had performance gaps of +10% or more among heavily shorted stocks, underscoring the shift in market dynamics [2] - The report suggests that while some stocks attract significant attention, not all short-sellers will profit, as evidenced by the underperformance of the most shorted stocks in 14 months post-January 2021 [2]