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 avoid P 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 $8.50 to $8 a share with heavy volume. If we get that action, then P will set up to re-test or possibly take out its next major support levels at $7.50 to $7.08 a share. Any move below $7.08 will then push P into new 52-week low territory, which is bearish technical price action.


My final earnings short-squeeze play is Photronics (PLAB - Get Report), which is set to release numbers on Tuesday after the market close. This company is a manufacturer of photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits. Wall Street analysts, on average, expect Photronics to report revenue of $121.83 million on earnings of 16 cents per share.

The current short interest as a percentage of the float for Photronics is rather high at 11.6%. That means that out of the 58.80 million shares in the tradable float, 6.86 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 0.7%, or by about 50,000 shares. If the bears are caught pressing their bets too aggressively into this quarter, then this stock could easily rip higher post-earnings.

From a technical perspective, PLAB is currently trending right above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been downtrending for the last six months, with shares dropping from over $6.60 to a recent low of $4.56 a share. During that downtrend, shares of PLAB have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of PLAB have recently rebounded off that low of $4.56 and its quickly moving within range of triggering a near-term breakout trade.

If you're in the bull camp on PLAB, then I would wait until after its report and look for long-biased trades as long as it's trending above its 50-day at $5.08, and then once it breaks out above $5.32 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 380,615 shares. If that breakout hits, then PLAB will set up to re-test or possibly take out its next major overhead resistance levels at $5.87 to $6.18 a share. Any high-volume move above $6.18 will then put $6.45 to $6.72 into focus for shares of PLAB.
6 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
PBY $18.50 0.05%
BIG $46.02 0.00%
MFRM $38.65 0.00%
P $8.68 0.00%
PLAB $10.65 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs