Three Speculative Earnings Plays

Stocks that are heavily shorted sometimes see some covering action ahead of their earnings releases. Three stocks that have high short interest levels are from companies that will report next week, and they have been doing some consolidating on their daily charts and have breakout potential if they see some covering going into earnings. The strategy is to jump on a pop ahead of earnings but to be out before the actual report.

First Solar (FSLR) was unable to make a new high in June and fell back below its 50-day moving average. Last week it recovered the average and held on above the $47.50 level, despite a series of weak candles. At one point in today's session, it was up more than 3% and was forming a strong-looking candle. The relative-strength and moving-average convergence/divergence indicators are tracking above their centerlines, and Chaikin money flow is above its 21-period signal line....312 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.