One earnings short-squeeze play in the biotechnology and drugs complex is Spectrum Pharmaceuticals ( SPPI), which is set to release numbers on Thursday before the market open. This company is engaged in developing and commercializing therapies with a focus primarily in the areas of hematology-oncology and urology. Wall Street analysts, on average, expect Spectrum Pharmaceuticals to report revenue of $52.73 million on earning of 31 cents per share. If you're looking for a heavily shorted stock that's trading within range of a potential breakout post-earnings, then make sure to take a close look at shares of Spectrum Pharmaceuticals. This stock has been uptrending strong heading into the quarter since shares are just two points off its 52-week high of $16 a share. The current short interest as a percentage of the float for Spectrum Pharmaceuticals is extremely high at 29%. That means that out of the 49.35 million shares in the tradable float, 15.79 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 15.7%, or by about 2.14 million shares. >>5 Biotech Stocks for 2012 From a technical perspective, SPPI is currently trading above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trading sideways for the past month and change between $16 on the upside and around $13 on the downside. A move outside of that range post-earnings should set this stock up for its next big trend. If you're bullish on SPPI, wait until after earnings and look for long biased trades if the stock breaks out above its 50-day moving average of $14.53 and above some near-term overhead resistance at $14.85 a share with high-volume. Look for volume that's tracking in close to or above its three-month average volume of 1.6 million shares. If we get that action, I would look for SPPI to re-test $16 and potentially take that level out if the bulls gain full control of this stock post-earnings. I would avoid any long trades or look for short biased trades in SPPI if after earnings this stock fails to move back above its 50-day moving average of $14.53 with strong volume. If we get that action, then SPPI could easily selloff back towards that near-term support at $13 a share, or possibly much lower if the bears whack this down post-earnings.