Stock of the Day: Did the Sellers of DICK’s Sporting Goods Capitulate?

DICK’S Sporting Goods, Inc. (NYSE: DKS ) shares are consolidating on Wednesday. They dropped by more than 30% yesterday after the company reported weaker-than-expected earnings. It also reduced its guidance. But the shares may be close to a turning point. This is why DICK’s is the Stock of the Day. Almost 39 million shares traded yesterday. That is more than 14 times the average daily volume of 2.76 million. This could show that the sellers have capitulated. This could be a bullish dynamic. Traders and investors who have been trying to sell DICK’s got tired of watching the shares head lower. Out of frustration, they threw in the towel and sold all of their shares. As a result, a huge amount of volume traded. After the dust settles, some people may think the news was bad, but they also think the market overreacted. They decide to buy, but they will have a hard time finding seller...