I would simply avoid TEAR or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 200-day moving average at $9.80 a share to more near-term support at $9.26 a share with high volume. If we get that move, then TEAR will set up to re-test or possibly take out its next major support levels at $8 to $7 a share, or even $6 a share.
One potential earnings short-squeeze candidate is biopharmaceuticals player Sarepta Therapeutics ( SRPT), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Sarepta Therapeutics to report revenue of $4.57 million on a loss of 65 cents per share.
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