NEW YORK (TheStreet) -- As we now enter the sixth week of second-quarter earnings reports, I think it is fair to say that investors have been learning the most important lesson of all when it comes to these reports: "expect the unexpected." Or when that has not worked, they are learning to "expect nothing, while hoping for the best."In my mind, these are the only ways to avoid the rash of disappointments that have marred portfolios, some more than others. There was the surprise by Yahoo! ( YHOO, followed by the Chipotle ( CMG disaster. And sandwiched in between that was Microsoft's ( MSFT first ever quarterly loss and a "ho-hum" quarter from IBM ( IBM. Oh, and let's not forget that Apple's ( AAPL report missed expectations, though it reported 20% increases in both revenue and profits. So essentially, reporting period is akin to the box of chocolate: "You never know what you're going to get." Nevertheless, in this article, we will look at two companies that are due to report earnings this week and try to predict which direction they are likely to go due to their reports. The first company is Sirius XM ( SIRI - Get Report), which we are looking to sell, and Chesapeake Energy ( CHK - Get Report), which looks like a buy recommendation.
Since the July 1, the stock has climbed as high as 20%, reaching $2.20 on two separate occasions. It is clear that the stock has already rallied on this news and that the only possible direction it can go upon the announcement is down, creating a "sell-the-news" type of a situation. With no clear catalyst remaining, I would not want to be a holder of Sirius, particularly while its status in relation to Liberty Media ( LMCA remains so uncertain.