Positive News, Halted and Dumped

For anyone that plays small cap stocks, halted stocks are a good indicator of increased volatility. Today EGLT presented news that the FDA approved one of its drugs. The stock, as you can see from the chart, immediately rocketed up more than $1 before it was halted. Traders waited patiently for the unhalt reasonably expecting the positive news to catapult the price upwards. However, as experience tells us, this is not always so straight forward. Following the unhalt, the stock price did reach a peak of $10 but was quickly rejected. The large red candles that followed were a sure sign that something was amiss. If the stock was truly bullish, it would not exhibit that kind of behavior. That's why its important to follow our experienced traders in real-time so you avoid this "sell the news" effect. Of course, tomorrow, the stock can recover and even make new highs, but getting in at the right price can make all the difference in your trading decision making and mindset!

Not the reaction Stocktwits was expecting.

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