With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

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Deckers Outdoor

My first earnings short-squeeze trade is footwear producer, marketer and brand manager Deckers Outdoor ( DECK), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Deckers Outdoor to report revenue of $623.02 million on earnings of $2.61 per share.

Last quarter, Deckers Outdoor reported revenue of $376.4 million, and GAAP reported sales were 9.2% lower than the prior-year quarter's $414.4 million. Decker's EPS was $1.18, and GAAP EPS was 26% lower than the prior-year quarter's $1.59 per share.

The current short interest as a percentage of the float for Deckers Outdoor is extremely high at 39.9%. That means that out of the 33.54 million shares in the tradable float, 13.4 million shares are sold short by the bears. This is a high short interest on a stock with a relatively low float. Any bullish earnings news could setup DECK for a monster short-squeeze post-earnings.

From a technical perspective, DECK is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has pulled back recently from its high of $45.20 to its low of $40.15 a share. So far off that pullback, shares of DECK have held above its 50-day moving average of $39.50 a share. Despite this pullback, shares of DECK are still trending within range of triggering a near-term breakout trade post-earnings.

If you're bullish on DECK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 200-day moving average of $42.39 a share and then once it takes out some near-term overhead resistance at $45.20 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.33 million shares. If that breakout hits, then DECK will set up to re-test or possibly take out its next major overhead resistance levels at $49.61 to $51.65 a share. Any high-volume move above those levels will then put $55 into range for shares of DECK.

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