Sunday, September 18, 2011

How does the stock with the largest gain of a day perform the following day on average?

For whatever stock sees the largest gain in one day, how much does the stock gain or lose the following day on average?


Thanks!|||There is absolutely no pattern to predict how that stock will behave the next day. Usually, a stock performs extremely well on one day due to some event - an upgrade by analysts, a great earnings report, some news that affects the company, etc. Sometimes a big rise one day brings profit taking and a lower price the next day. Sometimes, the big rise causes more people to jump on the bandwagon and the stock goes up more the next day.





One thing I have observed though, and that is usually a stock that skyrocketed in one day does not perform that well over the next several weeks - it is usually flat, down or up just a little bit.|||hard to say. I wouldn't recommend using this pattern in general. not very reliable

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