This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Earnings Short-Squeeze Plays

I would simply avoid HMIN or look for short-biased trades if after earnings it fails to trigger that breakout, and then moves back below $26.90 and its 50-day moving average of $26.32 a share with high volume. If we get that action, then HMIN will set up to re-test or possibly take out its next major support area at its 200-day moving average of $24.73 a share.

Michael Kors

Another potential earnings short-squeeze trade idea is Michael Kors (KORS - Get Report), which is set to release its numbers on Tuesday before the market open. This company designs, markets and distributes women's apparel and accessories and men's apparel. It operates in three business segments namely retail, wholesale and licensing. Wall Street analysts, on average, expect Michael Kors to report revenue of $519.31 million on earnings of 40 cents per share.

This company has reported double or triple-digit earnings gains since it came public last year. Just last week, Buckingham said the recent weakness in the stock was presenting a buying opportunity.

The current short interest as a percentage of the float for Michael Kors is notable at 3.1%. That means that out of the 123.10 million shares in the tradable float, 3.86 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a solid short-covering rally if Michael Kors can deliver the earnings news bulls are looking for.

From a technical perspective, KORS is currently trading above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $50.20 on the downside and $58.62 on the upside. A high-volume move outside of that range post-earnings will likely set up the next major trend for KORS

If you're in the bull camp on KORS, then I would wait until after its report and look for long-biased trades once this stock manages to recapture its 50-day moving average of $53.90 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 3,917,790 shares. If we get that move, then look for KORS to re-test or possibly take out its next major overhead resistance level at $58.62 a share. Any high-volume move above $58.62 should be considered very bullish technical action, since it will push KORS into all-time high territory.
3 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
HMIN $35.71 0.00%
CSOD $34.35 0.00%
IOC $33.47 0.00%
KORS $51.66 0.00%
SZYM $2.34 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs