Trading After A Halt

Discussion in 'Trading' started by AnonymousTrader, Oct 27, 2003.

  1. I've noticed in my miniscule research - from watching, not backtesting, that trading a stock after it had been halted is very profitable.

    What do you guys think?
  2. chs245


    How do you know in which direction you should trade it after a halt ?

  3. During a halt - usually substantial news are announced. It is clear to see whether they are good or bad. In the worst case, the stock after a halt opens gap up or down. Thats a sign of the impact.

    The most recent halt I traded was in CEPH when FDA approved some stage of its research. It opened a point higher - I longed and got out a point profit within 2 minutes. That was my latest trade.
  4. Do you have some news alert that tells you when a stock is halted.

  5. chs245


    yes, but the price was $1 lower after 30 minutes. I did trade it as well. The question remains: how do you determine your direction ? Buying goof news and shorting bad news as your only criteria will not lead to long term success. Don't have the answer myself.
  6. Not at the moment no - I was just tracking that stock.
  7. Thats exactly my question! After I got out - it went up another 20 -30 cents and then PLUNGE back down.

    But the idea is - whether the initial reaction is good enough pattern to trade?
  8. Thanks for the reply. I appreciate that.
    I was looking around on the web but couldn't find anything specific to that. I suspect it could work if you could backfill the chart like you can do on Quote Tracker.

  9. I think it would be difficult to screen these gaps? Never used quote tracker.

    I am thinking whether or not to put time aside for the Halt research... I think that something may be there!
  10. Quah


    Absolutely. Anytime a stock is halted and will go higher when it starts trading again, you should go long and sell when it goes higher. If it is going to go lower when it is resumed, you should short and cover when it goes lower.
    #10     Oct 27, 2003