Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of travel discount company Travelzoo (Nasdaq: TZOO) are shooting higher again today, one trading day after enjoying a nice earnings bump.

So what: There are a few things at work today driving shares higher. There's a little momentum left from the earnings spike but Benchmark Co. analyst Frederick Moran fueled the fire upgrading the stock to a buy and slapping a $123 price target on shares. There is also a big short squeeze in the works as traders have bet this expensive stock couldn't possibly get more expensive.

Now what: The shorts were obviously wrong heading into earnings season, and those who may be left are licking their wounds right now. Considering the stock's lofty 66 forward P/E ratio right now, I'm just not seeing this as a buying opportunity. I may miss out on a higher move by this rocket stock, but I won't get burned if the short squeeze ends and shares tumble back to earth either.

Interested in more info on Travelzoo? Add it to your watchlist.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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