Possible Top In Deckers Outdoor (DECK)

Today on CNBC's Stop Trading segment with Jim Cramer, the former hedge fund manager and popular TV personality said that he continues to like Deckers Outdoor DECK, a stock that he has been correct on for a long time now. DECK is a great company and has been a very solid hold in recent months with tremendous gains. Over any significant period of time, DECK has been great. In fact, it was one of the top performing stocks of the last decade. Given today's price action, however, short-term traders may want to consider taking a short position in the name heading into next week. The company reported earnings yesterday after the closing bell and initially the shares spiked after the print. DECK reported EPS of $2.27 compared to analysts' estimates of $1.99. Management also raised forward looking guidance. It was a good, if not great quarter. The trading activity in the name, however, is suggesting that DECK may be exhausted in the near term. The name was overextended into earnings, and many traders decided to take profits on the after-hours spike on Thursday and the opening gap higher on Friday morning. Don't be surprised if we see a couple more points of downside in DECK next week. Today's price action is uninspiring.