Over the next five trading days, there are hundreds of stocks that will make swings of 10% or more. The tough thing is that it's hard to predict which stocks will actually be making those moves.
However, I believe I've found a way to identify stocks that are on the verge of huge moves. By looking for companies that are heavily shorted -- or have many betting against their short-term success -- and are reporting earnings, we can predict big moves before they happen. If you don't believe me, just take a look at the three stocks I identified last week, which moved an average of 13% following their quarterly reports.
I'm not suggesting, however, that you try to turn a quick profit on this strategy, as it's impossible to know whether these stocks will be going up or down. Instead, I think it's important for investors in Five Below (FIVE -0.07%), Winnebago (WGO 0.23%), and GameStop (GME 0.10%) to know why their stocks might be making big moves and to focus on the numbers that really matter to long-term, buy-to-hold investors.
Photos: Five Below, Winnebago, GameStop.
