I would simply avoid MIND or look for short-biased trades if after earnings it fails to trigger that move, and then drops back below both its 200-day at $15.50 a share and its 50-day at $15.78 a share with high volume. If we get that move, then MIND will set up to re-test or possibly take out its next major support levels at $14.66 to $13.83 a share.
Another potential earnings short-squeeze candidate is
(ISCA - Get Report)
, an owner of motorsports entertainment facilities and promoter of motorsports-themed entertainment activities, which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect International Speedway to report revenue of $126.50 million on earnings of 36 cents per share.
The current short interest as a percentage of the float for International Speedway stands at 5.5%. That means that out of the 26.48 million shares in the tradable float, 1.42 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a short covering really if ISCA can deliver the earnings numbers the bulls are looking for.
From a technical perspective, ISCA 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 five months, with shares soaring higher from its low of $24.22 to its intraday high of $33.48 a share. During that uptrend, shares of ISCA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ISCA into new 52-week-high territory at $33.48 a share.
If you're bullish on ISCA, then I would wait until after its report and look for long-biased trades if this stock manages to break out to a new 52-week high with heavy upside volume. Look for volume on that move that registers near or above its three-month average action of 153,962 shares. If that breakout triggers, then ISCA could possibly trend north of $40 a share.
I would avoid ISCA or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support levels at $32 to $31 a share with high volume. If we get that move, then ISCA will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $30.27 to $29.81 a share.