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My final earnings short-squeeze trade idea is
Marriott International(MAR - Get Report), which is set to release numbers on Wednesday after the market close. This a diversified hospitality company has more than 3,700 properties in 73 countries and territories. Wall Street analysts, on average, expect Marriott International to report revenue of $2.65 billion on earnings of 40 cents per share.
This stock has been uptrending very strong in 2012, with shares up around 35%. This bullish price action has shares of Marriott International trending just three points off its 52-week high of $41.84 a share ahead of its report.
The current short interest as a percentage of the float for Marriott International is rather high at 7.5%. That means that out of the 242.86 million shares in the tradable float, 18.49 million shares are sold short by the bears.
From a technical perspective, MAR is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last two months, with shares soaring from a low of $34.69 to its recent high of $41.84 a share. During that uptrend, shares of MAR were consistently making higher lows and higher highs, which is bullish technical price action. Shares of MAR have cooled off a big recently from that $41.84 high to its current price of around $39.50 a share.
If you're in the bull camp on MAR, then I would wait until after its earnings report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $40.50 to $41.84 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 2.9 million shares. If we get that breakout, then MAR will have a great chance of tagging $45 a share or possibly much higher. Keep in mind that any move over $41.84 will push MAR into new 52-week-high territory, which is bullish technical price action.
I would simply avoid MAR or look for short-biased trades if after earnings it fails to trigger that breakout, and then moves back below some near-term support at $38.76 to $38.07 a share with high volume. If we get that move, then MAR will setup to re-test or possibly take out its 200-day moving average of $36.80 a share post-earnings.
To see more potential earnings short squeeze plays, check out the
Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.