Many times you will see a large volume spike at the end of a move either up or down. In this case there is news behind the spike. I am sure many new longs were added at these prices...foolish I know, but it happens all the time...the weakest hands of the bunch
The market forces at this particular juncture make buying a stock at all time highs an unwise choice. The major equity markets seem to be hanging over the edge wondering how far they will fall if they leap. Premium will come out of stocks that have had good runs, there is more profit to be taken out of such issues, I am short, not because I hate this company or think they are bad, I see the broad market ready to roll down and the high fliers will get smacked down with the rest of the market, good and bad alike.
If I had come in long to this earnings, I would definitely be a seller given what is going on in the global financial system. There will be a time to buy...How would you like to pick up DSW for $50 or even $45 per share. The next down leg in equities will provide the deals on the stocks.
Until then I like the short side, especially when there is good premium like this pop today in DSW, I just initiated a short above $61. And I am not alone. I believe the probability that the market will force the hand on this stock for profit taking is high.
Think about it, If you got the profits at this level what are you waiting for? They'll vanish like AAPL's all time high, except quicker as DSW is not as sexy as apple so not as much froth to stretch it way out.
Don't be angry, nothing personal, just calling it as I see it