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
TheStreet Open House

5 Heavy Shorts To Consider

I would avoid PVH or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support at $106 a share with high volume. If we get that action, then PVH will set up to re-test or possibly take out its 50-day moving average of $99.95 a share. Any move below $99.95 will then put PVH into risk of filling some of its previous gap down towards $90 a share.

American Eagle Outfitters

Another earnings short-squeeze candidate is American Eagle Outfitters (AEO), which is set to release numbers on Wednesday before the market open. This is a specialty retailer that operates more than 1,000 retail stores in the U.S. and Canada, and online at Wall Street analysts, on average, expect American Eagle Outfitters to report revenue of $872.95 million on earnings of 39 cents per share.

Just recently, BMO downgraded shares of American Eagle Outfitters from outperform to market perform with a price target of $20 due to a lack of catalysts to drive the price higher in the near term.

The current short interest as a percentage of the float for American Eagle Outfitters is notable at 8%. That means that out of the 172.88 million shares in the tradable float, 13.66 million shares are sold short by the bears. If American Eagle Outfitters delivers the earnings news the bulls are looking for, then this stock could explode higher post-earnings as the bears rush to cover some of their short positions.

From a technical perspective, AEO is currently trending below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock has been downtrending a bit for the last two months, with shares falling from a high of $22.97 to its recent low of $18.31 a share. During that downtrend, shares of AEO have been consistently making lower highs and lower lows, which is bearish technical price action. That said, AEO has now started to bounce right off its 200-day moving average of $18.35 a share and its quickly moving within range of triggering a near-term breakout trade.

5 of 7

Select the service that is right for you!

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.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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