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 Stocks Poised to Pop on Bullish Earnings

I would avoid TFM 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 $45 a share with high volume. If we get that move, then TFM will set up to re-test or possibly take out its next major support levels at $42.85 to its 50-day moving average at $42.31 a share.


My final earnings short-squeeze play is specialty retailer of branded footwear and accessories DSW ( DSW), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect DSW to report revenue of $588.81 million on earnings of 90 cents per share.

This company has topped Wall Street estimates three times in the past four quarters. The current short interest as a percentage of the float for DSW stands at 6.6%. That means that out of the 34.94 million shares in the tradable float, 2.18 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6.3%, or by about 137,000 shares. If the bears are caught pressing their bets into a bullish quarter, then shares of DSW could easily rip higher post-earnings.

From a technical perspective, DSW 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 month, with shares moving higher from its low of $63.15 to its recent high of $70.78 a share. During that uptrend, shares of DSW have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DSW within range of triggering a near-term breakout trade.

If you're in the bull camp on DSW, 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 at $70.78 a share and then once it takes out its 52-week high at $72 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 497,553 shares. If that breakout triggers, then DSW will set up to enter new 52-week-high territory above $72, which is bullish technical price action. Some possible upside targets off that move are $75 to $80 a share, or even north of $80 a share.
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
OVTI $29.38 1.49%
BIG $37.34 0.00%
DSW $23.76 0.00%
FRED $12.94 0.00%
TFM $18.95 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs