Institutional investors such as hedge funds typically have access to more sophisticated market information than main street traders, so their buying and selling activity are closely monitored by the investment community. For this list we looked for hedge fund selling as a sign that rallying stocks are ready for downside. To support this assumption, we further looked for companies with significant increase in shares shorted to their otherwise low short float.More on this list:Rallying: These stocks have been doing very well lately. Their current share price is above their 20, 50 and 200 day moving averages (MA). This signals upward momentum. Low short floats: Short sellers benefit when a share price falls, a high short float indicates short sellers are increasing their "short" position in anticipation of a drop off. But, in line with the stock's upward rally, the stocks in our list have short floats. We screened for floats between 0% and 10%, an optimistic range. But what goes up will eventually come down. So we looked for signals the glory days are over. Hedge Fund sales: Net institutional sales in excess of 5% of share float in the current quarter. This indicates money mangers are pessimistic about future performance. Increase in short selling: As mentioned above, an increase in shares shorted (and increase in share float) is a pessimistic signal. When short sellers start buying into these rallying stocks it enforces the idea that the market believes downside is more likely than further upside. We screened for an increase in short selling month over month representing at least 1% of share float. Seven companies made the cut. Business Section: The List Hedge funds and an increasing number of short sellers are signaling an end of a rally for these names. Do you agree with their bearish predictions? Use this list as a starting point for your own analysis.