I would simply avoid JCP or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some key near-term support levels at $8 to $7.63 a share with high volume. If we get that move, then JCP will set up to re-test or possibly take out its next major support levels at $7 to its 52-week low at $6.24 a share.
One potential earnings short-squeeze candidate is integrated solar-power products maker Trina Solar (TSL), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Trina Solar to report revenue of $472.92 million on a loss of 14 cents per share.
The current short interest as a percentage of the float for Trina Solar is pretty high at 5.02%. That means that out of the 65.92 million shares in the tradable float, 3.83 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, the shares of TSL could explode sharply higher post-earnings as the bears jump to cover some of their bets.From a technical perspective, TSL is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways and consolidating for the last month and change, with shares moving between $13.62 on the downside and $17.84 a share on the upside. Any high-volume move above the upper-end of its recent range post-earnings could trigger a big breakout trade for shares of TSL. If you're bullish on TSL, 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 $17.38 a share to its 52-week high at $17.84 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 5.67 million shares. If that breakout hits, then TSL will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $27 a share.
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