I would avoid BIG or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average at $36.42 a share with high volume. If we get that move, then BIG will set up to re-test or possibly take out its next major support levels at $33.76 to its 200-day moving average at $32.46 a share.
Another earnings short-squeeze prospect is specialty grocery retailer Fresh Market ( TFM), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Fresh Market to report revenue of $369.69 million on earnings of 44 cents per share.
The current short interest as a percentage of the float for Fresh Market is notable at 8.6%. That means that out of the 40.05 million shares in the tradable float, 3.53 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low float. If Fresh Market can give the bulls the earnings news they're looking for, then this stock could easily experience a solid short-squeeze post-earnings.From a technical perspective, TFM is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $38.95 to its intraday high of $47.33 a share. During that uptrend, shares of TFM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TFM within range of triggering a near-term breakout trade post-earnings. If you're bullish on TFM, 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 $48 to $49.50 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 779,711 shares. If that breakout triggers, then TFM will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average at $50.47 to $51.10 a share. Any move above $51.10 will then put $55 to $57 a share into range for shares of TFM.