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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

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), 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.

Stock quotes in this article: HMIN, KORS, IOC, CSOD, SZYM 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs