Usually, this weekly installment includes three stocks that have a high potential for making big moves on Wall Street. This week however, likely because of the upcoming holidays, only two stocks fit the mold: Cal-Maine Foods (CALM +2.02%) and CalAmp (CAMP +0.00%).
What these two stocks have in common is that they are both reporting earnings in the upcoming week, and both are heavily shorted -- or have lots of investors betting against their short-term success. That's a recipe for volatility: The last time I identified three such stocks, they moved an average of 23% following their respective releases!
But I don't think you should try and turn a quick profit based on this information. There's no telling if shares will go up or down. Instead, I think you should take the time to check out the slideshow below, which will help you separate short-term noise from important long-term signals.
Image sources: Cal-Maine, CalAmp.
