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5 Stocks Set to Soar on Bullish Earnings

Stocks in this article: CBST ISRG SWKS COL INTC IBKR ZOLL IIIN

For the last three consecutive quarters, this company has seen its profits trend higher. The most recent quarter saw a 17.4% year-over-year growth in net income after seeing just a 2.3% profit growth in the second quarter and a 29.4% jump in the first quarter.

The current short interest as a percentage of the float for Intel stands at 2.3%. That means that out of the 5.09 billion shares in the tradable float, 117.48 million shares are sold short by the bears. This is far from a large short interest, but with over 110 million shares sold short, it's more than enough to lead to a decent pop in the stock if the bulls hear what they're looking for.

From a technical standpoint, INTC is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong since it bottomed in September at $18.99 a share. During that uptrend, this stock has consistently been making higher lows and some higher highs. Now INTC is setting up to trigger a big breakout post-earnings.

If you're bullish on INTC, I would wait until after they release their results and buy the stock if it breaks out above $25.92 high volume. Look for volume that's tracking in close to or above its three-month average volume of 56,196,300 shares. If we get that action, I would look for INTC to spike higher by 10% to 15%.

I would get short or avoid INTC if after their report this stock fails to breakout and drops back below its 50-day moving average of $24.42 on high volume. Target a drop back towards $23.05 or the 200-day moving average of $22.31 if the bears hit this stock hard post-earnings.

To see more potential earnings short-queeze plays like Insteel Industries (IIIN), Zoll Medical (ZOLL) and Interactive Brokers Group (IBKR), check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
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