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5 Heavy Shorts To Consider

I would simply avoid TFM or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support at $60 a share with heavy volume. If we get that action, then TFM will set up to re-test or possibly take out its 50-day moving average of $58.70 a share. Any high-volume move below its 50-day and TFM will set up to re-test its next major support levels at $55.34 to its 200-day at $53.84 a share.

Bazaarvoice

Another potential earnings short-squeeze trade is Bazaarvoice (BV - Get Report), which is set to release its numbers on Monday after the market close. This company provides social commerce solutions that help its clients capture, display & analyze online word of mouth, such as consumer-generated ratings & reviews, questions & answers, stories, recommendations, photographs, videos & other contents. Wall Street analysts, on average, expect Bazaarvoice to report revenue of $38.53 million on a loss of 10 cents per share.

If you're looking for a beaten-down heavily-shorted stock heading into its earnings report, then make sure to check out shares of Bazaarvoice. This stock has been hammered by the sellers during the last six months, with shares down by over 30%. That move has pushed this stock just one point above its 52-week low of $9.86 a share ahead of its report.

The current short interest as a percentage of the float for Bazaarvoice is very high at 14.8%. That means that out of the 33.77 million shares in the tradable float, 5.81 million shares are sold short by the bears. This stock has a relatively low float and a high short interest. Any bullish earnings news could easily set this stock off on a sizeable short-squeeze post-earnings.

From a technical perspective, BV is currently trending below its 50-day moving average, which is bearish. This stock has been downtrending badly for the last six months, with shares dropping from $20 to its recent low of $9.86 a share. During that downtrend, shares of BV have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BV have started to stabilize above $10 a share and it's moving within range of triggering a near-term breakout trade post-earnings.

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