WINDERMERE, Fla. ( Stockpickr) -- News events have the power to create big volatility in stocks, and the one event that can move them substantially higher or lower is an earnings release. Combine a bullish earnings report with a stock that's heavily shorted, and you have the fuel to ignite a large short squeeze.Short-sellers hate being caught short a stock that announces bullish earning and forward guidance. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions and avoid huge losses. Even the most skilled short-sellers know that it's never a great idea to stay short once an earnings event sparks a big short-covering rally.
5 Earnings Stocks Poised to Pop
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