One earnings short-squeeze play in the semiconductor complex is Skyworks Solutions (SWKS - Get Report), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Skyworks Solutions to report revenues of $389.63 million on earnings of 50 cents per share.
The current short interest as a percentage of the float for Skyworks Solutions is notable at 4.1%. That means that out of the 186.14 million shares in the tradable float, 7.66 million are sold short by the bears. The short sellers have also been increasing their bets from the last reporting period by 7.8%, or by about 553,600 shares.
From a technical standpoint, SWKS is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong since it hit a near-term bottom at $13.72 in December since its current price is just over $19 a share. Shares of SWKS are now approaching some past resistance levels as we approach their earnings report.If you're bullish on SWKS, I would wait until after they report their earnings and buy some shares if it trades above $20 a share on high-volume. Look for volume that's tracking in close to or above its three-month average action of 5,116,990 shares. If we get that action, then look for SWKS to challenge its 200-day moving average of $21.84 a share. I would add to any long positions if SWKS then takes out the 200-day with strong volume. Target a run up towards $23.50 or possibly higher. I would avoid getting long SWKS or get short if the stock drops below $18 to $17.50 a share on high-volume after their earnings report. I would add then add to any short positions if SWKS takes out its 50-day moving average of $16.85 with high-volume. Target a drop back towards $16 to $15 a share if the bears hammer this lower post earnings. Rockwell Collins One earnings short-squeeze play in the aerospace and defense complex is Rockwell Collins (COL - Get Report), which is set to release numbers on Thursday after the market close. This company is engaged in the design, production and support of communications and aviation electronics for commercial and military customers worldwide. Wall Street analysts, on average, expect Rockwell Collins to report revenues of $1.09 billion on earnings of 84 cents per share.