A Play In Deckers Before Earnings

Deckers ($DECK) reports on 7/27/2011 after the close, like Apple ($AAPL), $LULU, $NFLX, $GMCR, Deckers is one of those companies with a great product that people can’t get enough of. I’m not recommending holding Deckers through earnings, but the stock is technically set up and a move through 95.40 might lead to some short covering, anticipatory-they might beat again buying. According to Finviz there is only 37.39 million shares in the float, and with the stock less than 2 points off the 52 week high, 10% of the float is still short with a short interest ratio of about 3.5 days.

Technically, in the last 9 days the stock has traded roughly between 91 and 95.30, a breakout could take the stock to 100.  If we take the trade, we will be out before earnings and probably stop ourselves out at the low of the day if and when it breaks out.

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