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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