3 Stocks That Could Make Huge Moves This Week

By Markets Fool.com

The dog days of summer are upon us, and things are starting to heat up on Wall Street. Earnings season has kicked off and is now in full swing. If you own shares ofOuterwall(NASDAQ: OUTR),SolarCity(NASDAQ: SCTY), orNatural Grocers by Vitamin Cottage (NYSE: NGVC), not only are your companies soon to report earnings, but you could be looking at a volatile week ahead.

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That's because all three of these stocks are heavily shorted. And when heavily shorted companies report earnings, volatility is almost always the result. For proof, look at the three companies I highlighted in mid-July, which moved an average of 6% following their respective quarterly reports.

But instead of trying to profit from this information, I think long-term investors should prepare themselves mentally for the coming volatility. By zeroing in on what really counts over the years-long time horizon, you can ignore the noise of day-to-day moves. Check out the slideshow below to see what's really worth watching.

3 Stocks That Could Make Huge Moves This Week from

The article 3 Stocks That Could Make Huge Moves This Week originally appeared on Fool.com.

John Mackey, co-CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. Brian Stoffel owns shares of SolarCity and Whole Foods Market. The Motley Fool recommends Netflix, SolarCity, and Whole Foods Market. The Motley Fool owns shares of Netflix, SolarCity, and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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