Advanced Micro Devices

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Another potential earnings short-squeeze play is Advanced Micro Devices ( AMD), which is set to report results on Tuesday after the market close. This is a global semiconductor company. Wall Street analysts, on average, expect Advanced Micro devices to report revenue of $1.72 billion on earnings of 16 cents per share.

Wall Street is looking for a decent quarter out of Advanced Micro Devices this week, since estimates are for 16 cents per share, which is up from 14 cents per share a year-ago. Over the last four quarters, revenue as trended higher by 0.6% on average year over year. During the most recent quarter, the company registered its best revenue gains when it increased 4.4% from the year-ago.

The current short interest as a percentage of the float for Advanced Micro Devices is extremely high at 15.1%. That means that out of the 588.50 million shares in the tradable float, 89.05 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.2%, or by about 2.76 million shares.

From a technical standpoint, AMD is currently trading right at its 200-day moving average and above its 50-day moving average, which is neutral trendwise. This stock recently triggered a big breakout trade once it moved above some past overhead resistance at $6 to $6.05 a share on big volume. In fact, volume for the past five trading sessions has been expanding dramatically to the upside.

If you're bullish on AMD, I would wait until after it report its results and buy the stock once it moves back above its 200-day moving average of $6.60 on high-volume. Look for volume that's tracking in close to or above its three-month average action of 15.9 million shares. If we get that move, I would target a move back towards its next significant overhead resistance levels at $7.44 to $7.87 a share, or possibly much higher.

I would avoid any long trades or short AMD after their report if the stock fails to take out the 200-day moving average of $6.60 with volume. If that level holds as stiff resistance, then I would look for AMD to trade lower back towards its 50-day moving average of $5.54.

AMD is one of Scott Rothbort's " 11 Worst-Run Companies of 2011."

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