This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Short-Squeeze Plays Primed for Quick Profits

I would avoid ZLC or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some key near-term support levels at $6.75 to $6.57 a share with high volume. If we get that action, then ZLC will set up to re-test or possibly take out its next major support levels at $5.95 to $5.45 a share. Any high-volume move below $5.45 could send ZLC back towards its 200-day moving average of $3.94 a share.

Brown Shoe Company

Another earnings short-squeeze candidate is the Brown Shoe Company (BWS - Get Report), which is set to release numbers on Thursday before the market open. This is a footwear retailer and wholesaler, which provides an offering of licensed, branded and private-label casual, dress and athletic footwear products to women, men and children. Wall Street analysts, on average, expect the Brown Shoe Company to report revenue of $703.27 million on earnings of 46 cents per share.

This stock has been uptrending very strong heading into earnings, with shares up a whopping 76% so far in 2012. Shares of the Brown Shoe Company are currently trading just one point off its 52-week high of $16.88 ahead of its report.

The current short interest as a percentage of the float for the Brown Shoe Company stands at 6.5%. That means that out of the 40.38 million shares in the tradable float, 2.61 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low float. Any bullish earnings news could easily spark a decent short-squeeze post-earnings.

From a technical perspective, BWS is currently trending above its 200-day moving averages and just below its 50-day moving average, which is neutral trendwise. This stock has been uptrending very strong for the last five months, with shares soaring from a low of $10.98 to its recent high of $16.88 a share. During that uptrend, shares of BWS have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed BWS within range of triggering a major breakout trade post-earnings.

5 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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.
Submit an article to us!
ZLC $21.02 -0.66%
BWS $31.13 -1.02%
DSW $37.30 -0.11%
NUAN $13.97 2.34%
RAVN $20.62 -0.10%


DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

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