I would simply avoid SWHC 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 of $11.22 a share with high volume. If we get that move, then SWHC will set up to re-test or possibly take out its next major support levels at $10.50 to its 200-day moving average of $10.34 a share. Any high-volume move below those levels will then give SWHC a chance to tag $10 to $9.50 a share.
Another earnings short-squeeze candidate is homebuilding and financial services player Hovnanian Enterprises ( HOV), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Hovnanian Enterprises to report revenue of $582.89 million on earnings of 16 cents per share.
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