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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV