9/30/2009

High volume breakdowns do not necessarily follow through

ICON: Iconix Brand Group

Today as of now ICON is down 20% on huge volume. It is highest volume in years. So does this make this stock a good short. No . Most of the time such drops do not follow through to downside. In fact many stocks spent months going sideways or rally up from such high volume drops. Lot of traders look at such drops as over reaction and play for the immediate bounce.

No comments: