** Squeeze in heavily shorted names is giving hedge fundschance to revisit bearish bets on certain stocks, two traderssay
** Rally across European stocks post-Greek deal lifted allboats including heavily shorted stocks that were squeezed
** Swatch (43 pct utilisation rate per Markit)moves from among most oversold in Europe to among mostoverbought (RSI above 70 for first time since November 2014).Chart: http://link.reuters.com/puw25w
** Stock has bounced 18 pct in 8 trading days since earnings, though rally looks to be running out of steam
** Alfa Laval (30 pct utilisation) up 9 pctfollowing results
** Others moving from oversold to overbought through therally and having high short interest: Petrofac, Galenica, Elekta, CNHI, Carillion, Air France
** Average days-to-cover ratio in Europe has moved fromaround 6 days to 4 days in the last week, according to Citi,suggesting absolute level of outstanding short positions hascome off (RM: alasdair.pal.thomsonreuters.com@reuters.net)