My final earnings short-squeeze trade idea is Marriott International (MAR), 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.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV