I would simply avoid CONN 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 $34.76 a share with high volume. If we get that move, then CONN will set up to re-test or possibly take out its 50-day moving average of $32.21 a share.
Another potential earnings short-squeeze play is oil well services and equipment player Mitcham Industries (MIND - Get Report), which is set to release its numbers on Wednesday after the market close. Wall Street analysts, on average, expect Mitcham Industries to report revenue of $29.58 million on earnings of 40 cents per share.
This company has topped Wall Street analysts' estimates two times during the last four quarters. During the last quarter, Mitcham Industries reported revenue of $18.6 million and GAAP reported sales were 34% lower than the prior-year quarter's $28 million.The current short interest as a percentage of the float for Mitcham Industries is notable at 4.5%. That means that out of the 11.93 million shares in the tradable float, 539,000 shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a decent short covering rally if MIND gives the bulls the earnings news they're looking for. From a technical perspective, MIND is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last four months, with shares soaring higher from its low of $11.51 to its recent high of $18 a share. During that uptrend, shares of MIND have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MIND within range of triggering a near-term breakout trade post-earnings. If you're in the bull camp on MIND, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $17.15 to $18 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 64,069 shares. If that breakout triggers, then MIND will set up to re-test or possibly take out its next major overhead resistance levels at $18.79 to $19.83 a share. Any high-volume move above those levels will then put $21 to $22 into range for shares of MIND.