Threshold Pharmaceuticals, Inc. (NASDAQ: THLD)
Threshold Pharmaceuticals is having an incredible day in the market today. Running higher on strong volume, the stock has already gained more than 50%! Today, we’ll talk about what high volume means, see if there’s any fundamental news leading to the strong volume, take a look at what we’re seeing in the market, and talk about what we can expect to see ahead from THLD.
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What High Volume Tells Us About THLD
The volume associated with a stock is the number of shares that trade hands during any given trading day. When it comes to Threshold Pharmaceuticals, the average volume on the stock throughout a trading session is 1,106,015. However, so far today (12:18), shares have traded hands 33,151,900 times. Ultimately this tells us that, for some reason, investors are incredibly excited about this stock. Now, there are two possible reasons – positive fundamental data or strong technical signals. On the technical side, trends tend to be short term. However, if fundamental data is causing this, we could see long-run gains.
Is There Any Strong Fundamental News
When I see a move in the market like the move we’re seeing today from THLD, the first thing I do is look for a fundamental release. Did something change in management? Are new products being offered? What is going on that fundamentally says this company is going to soar?
So, naturally, following the gains we’re seeing on the stock, I started to search. No matter where I looked, there was nothing. It seems like news outlets have completely forgotten about THLD for the past 24 hours! So, I can tell you the gains we’re seeing today are not based on any strong fundamental changes.
What We’re Seeing From The Stock
As mentioned above, Threshold Pharmaceuticals is having an incredibly strong day in the market. Trading on high volume, the stock is skyrocketing. Currently (12:17), the stock is trading at $1.03 per share after a gain of $0.42 per share (68.48%) thus far today.
What We Can Expect To See Moving Forward
While I would like to say that I’m expecting the strong gains to continue, that simply isn’t the case. At the end of the day, THLD is seeing incredibly strong movement. However, there is no fundamental news backing such strong gains. As a result, I’m expecting today’s bullish run to be short lived. So, if you’re involved in this trade at the moment, you might want to start looking for exit point indicators!
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What Do You Think?
Where do you think THLD is headed moving forward? Join the discussion at TalkTRENDZ!
[Image Courtesy of Wikipedia]