If you see a stock that is typically trading for $100 a share trading for $99 or $101 after hours, you attribute that to fewer participants in the market, more volatile, or similar rationalization. Most pay little attention to it.
However, if you're following a company closely, and you see extremely high volume after hours and that $100 a share company is trading for $200, but then plummets back to $100 during normal trading hours, what does that mean? Does it mean some whale believes that the stock will eventually go to $200+ or does it mean nothing at all, the prices those whales trade for after hours? And if it means nothing at all, then why are some big traders trading at those valuations only for it to slip back to the average just before the… eh…. “commoners” begin trading?
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