Lumber Liquidators - The Day After

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Lumber Liquidators Holdings Inc. LL shares were trading lower by $1.00 (2.5 percent) at $49.63 in Thursday's session. One day removed from one of the worst one-day routes in years, it pierced Wednesday's low ($48.64) before rebounding to $50.69 and resuming its selloff.

A flurry of negative news bombarded the issue shortly after reaching a six-month high at $69.99 mid-morning on Wednesday despite delivering a Q4 miss ($0.64 vs. $0.76 estimates) on weaker sales ($272 million vs. $279.5 million).

Related Link: Jefferies: Lumber Liquidators Not 'Out of the Woods'

The combination of a potential negative "60 Minutes" story over the weekend coupled with the DOJ contemplating criminal judges, ignited the tailspin in the issue.

If the decline continues through the intraday low, there may be additional support at its October 24 low ($47.76). That low coincided with its October 2012 low ($47.31).

Wednesday's move was on much higher than average volume as 16.4 million shares changed hands as opposed to its 20-day average of 1.6 million shares. Thursday's volume is above average as well, but should not come near the monster volume from Wednesday.