Cohen & Steers

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Another earnings short-squeeze prospect is global investment management player Cohen & Steers ( CNS), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Cohen & Steers to report revenue of $73.65 million on earnings of 41 cents per share.

The current short interest as a percentage of the float for Cohen & Steers stands at 10.8%. That means that out of the 18.70 million shares in the tradable float, 2.04 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 7%, or by about 132,000 shares. If the shorts are caught pressing their bets into a bullish quarter, then we could easily see a decent short-squeeze develop post-earnings.

From a technical perspective, CNS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently pulled back to its 50-day moving average at $34.32 and found buying interest. Shares of CNS have ripped higher off its 50-day to its recent high of $39.17 a share. That move has now pushed shares of CNS within range of triggering a near-term breakout trade post-earnings.

If you're bullish on CNS, then I would wait until after its report and look for long-biased trades if this stock manages to break out to a new 52-week high above $39.17 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 164,000 shares. If that breakout triggers, then CNS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 or higher post-earnings.

I would avoid CNS or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $37 a share with high volume. If we get that move, then CNS will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $34.32 a share or its 200-day moving average at $31.17 a share.

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