I would avoid ZLC or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some key near-term support levels at $6.75 to $6.57 a share with high volume. If we get that action, then ZLC will set up to re-test or possibly take out its next major support levels at $5.95 to $5.45 a share. Any high-volume move below $5.45 could send ZLC back towards its 200-day moving average of $3.94 a share. Brown Shoe Company Another earnings short-squeeze candidate is the Brown Shoe Company ( BWS), which is set to release numbers on Thursday before the market open. This is a footwear retailer and wholesaler, which provides an offering of licensed, branded and private-label casual, dress and athletic footwear products to women, men and children. Wall Street analysts, on average, expect the Brown Shoe Company to report revenue of $703.27 million on earnings of 46 cents per share. This stock has been uptrending very strong heading into earnings, with shares up a whopping 76% so far in 2012. Shares of the Brown Shoe Company are currently trading just one point off its 52-week high of $16.88 ahead of its report. The current short interest as a percentage of the float for the Brown Shoe Company stands at 6.5%. That means that out of the 40.38 million shares in the tradable float, 2.61 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low float. Any bullish earnings news could easily spark a decent short-squeeze post-earnings. From a technical perspective, BWS is currently trending above its 200-day moving averages and just below its 50-day moving average, which is neutral trendwise. This stock has been uptrending very strong for the last five months, with shares soaring from a low of $10.98 to its recent high of $16.88 a share. During that uptrend, shares of BWS have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed BWS within range of triggering a major breakout trade post-earnings.