Ever-Glory International Group (EVK) Stock Is Flying on No News

Ever-Glory International Group EVK Stock News

Ever-Glory International Group Inc (NASDAQ: EVK) is running for the top in the market this morning, trading on gains that are better stated in multiples than percentages. However, there has been no news issued by the company and there’s no clear catalyst causing the gains. In fact, on my favorite Twitter page, Open Outcrier, EVK stock was named as one of today’s “WTF trades.”

So, what’s going on?

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EVK Stock Is Running for the Top on No News

Ever-Glory International Group is trading on gains of well over 100% at this point. When we see runs this dramatic, there’s usually positive news that acted as a catalyst. However, I’ve dug through Yahoo! Finance, the company’s website, and the SEC’s website. There’s nothing out there my friends. 

So, why is EVK stock making a dramatic run for the top?

The first clue for the dramatic gains is the stock’s float. Take a look for yourself, the float is sub 4 million. Why does that have anything to do with the run? Well, when there is a tiny float, it means that there’s not much of a supply of shares on the stock market. As a result, if demand starts to increase, even minimally, in a stock that has such a tiny float, the price of the stock has the potential to fly based on the simple economic law of supply and demand. 

With such a tiny float, a single large shareholder, or group of shareholders, could make a large purchase, sending the stock for the top. That seems to be the case here. Once the stock started to rise, technical indicators started to light up like a Christmas tree, leading to signal services raising awareness of the stock. 

Naturally, this is leading to further demand increases in EVK stock, once again sending the price upward. 

The icing on the case is the trend of algo trading we’ve been seeing lately. With computer programs now using algorithms to find strong technical signals suggesting that stocks with low floats will climb, algo traders are jumping in, sending the stock further up. 

The Bottom Line

The bottom line here is that the move in EVK stock is a purely technical one. However, that doesn’t mean that there’s not more room to take advantage of the high volume growth we’re seeing this morning. The fact of the matter is that with a float of 3.98 million shares, the sky is the limit. 

Nonetheless, if you’re not a trader and don’t fully understand what’s going on, you may want to stay away from this run. Timing the market is difficult and buying a stock after dramatic gains like this can be risky. Nonetheless, if you know what you’re doing, there may be a huge opportunity in EVK stock as the opening bell rings. 

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