This flies in the face of everything I used to say about after-hours trading…
After-hours is easier.
There have always been times of day that are easier than others.
And right now, with all the CRAZY low-float supernovas…
The “easy” time to trade is after-hours.
Here’s why…
The Biggest Percent Gainers Are…
For the past couple of weeks, the top percent gainers every day have had two things in common:
• They’re low-float.
• They’re highly volatile.
Let’s unpack those before I share recent examples…
High Volatility Stocks
Volatile stocks make big, fast price swings. I’ve traded them for my entire career.
Why?
Stocks that make big intraday moves are full of opportunity, right?
Volatile stocks present the best opportunities for short-term reward.
At the same time, they’re higher risk (which is why I trade scared).
The second thing the recent spikers have had in common is that they are…
Low-Float Stocks
For example, recent runner T3 Defense Inc. (DFNS) has a tiny 1.57 million share float…
Source: Stocks To Trade
DFNS, micro-float.
How does float affect price action?
The float is the number of publicly traded shares. When a low-float stock spikes, it gets a lot of attention.
But because it’s low-float, supply is limited (it’s basic supply and demand).
The higher the stock goes, the more people want to buy. But that lowers the available supply, sending prices even higher.
Of course, that also brings short sellers into the game.
Short sellers think these tiny companies are scams. Or that their stock doesn’t deserve to be that high.
So, they borrow shares to sell into the buying frenzy, adding to the supply.
This is where it gets interesting. And it’s why after-hours trading is awesome right now.
What happens?
Short Sellers’ Fantasies Turn Into a Nightmare
Shorts aren’t wrong. They’re just over-aggressive (and most are early).
For example, look at what happened with China Pharma Holdings Inc. (CPHI) on July 21…
Source: Stocks To Trade
CPHI, 7/21/26 – 7/22/26, short squeeze supernova with halts with dilutive offering.
Shorts got absolutely CRUSHED in that short squeeze.
My advice: never short a low-float spiker. For that matter, I don’t advise anyone to short sell anymore (at all).
Why?
Crazy short squeezes. We’ve seen short squeeze supernovas GALORE the past two months.
But short sellers are either too dumb or too stubborn to learn. So, don’t expect it to end anytime soon.
Recently, their stubbornness has led to…
Volatility Halt After Volatility Halt
When stocks start to halt and skip, it’s scary for every trader stuck in the halt, long or short.
This CPHI chart from the same day (July 21) points out most of the volatility halts…
Source: Stocks To Trade
CPHI, 7/21/26, volatility halts, clean after-hours price action.
You can’t be sure which direction a stock will go coming out of the halt.
Level 2 might give you clues, but sometimes big players create spoof orders. Then they cancel them right before trading resumes.
The bottom line…
I do everything possible to avoid getting stuck in a trading halt of any kind.
Halts can happen for a variety of reasons, including:
• T1 halts for pending news.
• T2 halts for news that has been released but is still being disseminated.
• T12 halts when NASDAQ requests additional information from a company.
But most of the time, the stocks I’m trading halt because of volatility.
Which is why after-hours is easier.
No After-Hours Volatility Halts
Before there’s any confusion…
Stocks CAN halt after-hours and premarket. But there are no volatility halts.
On July 27, T3 Defense Inc. (DFNS) had several volatility halts throughout the day…
Source: Stocks To Trade
DFNS, 7/27/26, volatility halts during regular trading hours.
Halts related to volatility include:
• T5 halts for when a stock moves 10% or more in 5-minutes.
• LUDS halts when a stock is stuck at the limit price but not trading.
• LUDP and LULD halts are limit-up or limit-down volatility pauses.
The beautiful thing about after-hours (and why I find it MUCH easier right now) is…
Cleaner Price Action
I can read the price action much easier during after-hours trading. If a stock is halting and skipping, it’s frustrating.
For example, look at the July 27 Wearable Devices Ltd. (WLDS) chart below:
Source: Stocks To Trade
WLDS, 7/27/26, volatility halts are like playing the stock market on extreme mode.
It’s like playing a video game on extreme mode (no thanks).
I’ll take “easy” any day of the week.
Adapt to Succeed
Successful trading takes hard work and discipline.
It takes time (and you’re going to have to study HARD).
But also understand that the market shifts.
Patterns play out for a while, while others stop working.
Certain times of day get easier for a while, and other times get more difficult.
You MUST adapt to the market.
Right now…
After-hours trading is easier (for me).
I like being able to understand the price action without wondering if a stock is about to halt and skip up or down.
If you have any questions, email me at [email protected].
Cheers,
Tim SykesEditor, Tim Sykes Daily
