Running up for no reason

How do you interpret stocks that shoot up on tons of volume for no apparent reason? I am just starting to use trade-ideas and checking out the running up alerts. One for example today would be: EGHT

Is this smart money? how would the seasoned guys interpret/play something like this? I'm not buying it but it sure looks tempting.

 

those kinds of things don't look tempting to me unless they drop back on much lighter volume.

 

Did trade-ideas tell you as it was going up? How many ideas is the program coming up with?

 

I just checked today's history, the first alert on that one was at 10:21:20 "Running up: +0.03 in less than one minute."

That seems pretty good when you look at it. There are alot of other running up alerts too (and of course other types of alerts). This is only my 3rd day trying out Trade-Ideas, I like it alot so far. You can get overwhelmed real easily with so many alerts and alert types but can easily narrow your focus.

Main thing I was asking about was these stocks that shoot up for no reason. I guess the thing to do is not ask "why" just look at the action.

 

No rhyme nor reason...unless of course for future news which we dont know about yet....peace

 

Does the site have volume alerts or are they all priced based?

 

The site has volume alerts also. Specifically one called "high relative volume".
http://www.trade-ideas.com/Help.html#HRV.

If you want to see all the options just click on this link.
http://www.trade-ideas.com/Config.p...inPrice=5&MaxSpread=8&MinVol=300000&MinRV=1.5

 

I look at the recent history in the charts and the nature of the issue. However there could be number of reasons for the action and my decision to deal with it at all would involve a number of variables.

Bottom line is that if its too spikey I may choose to avoid it until more information is obtained.

 

Uhh simple concept of buyers??

Some fund wants to get a positions in XYZ and send their less intelligent traders to do so. Hence the idiots just start buying it up ASAP instead of slowly picking up sellers and shorts.


Whats more interesting how stocks shoot up on almost no volume. I'm talking bout 2 bucks on less than 100,000 volume

 

For what it's worth here is a follow up gif of EGHT from today:

http://www.trajectorylabs.com/EGHT_2003.09.05.gif


The vertical red line is the day I was alerted to the stock (Aug.22). The horizontal red line is what I felt was an important line of resistance.

Perhaps by that point resistance was confirmed to be broken and that's what brought the buyers/volume.

Did I buy the stock that day? no. Am I looking at developing a system using these ideas... yes

Close 8-22: 1.25
Close 9-05: 1.56

Percentage Change: +24.8%
9 day hold