Time and time again, I see a stock that during regular trading is moving in one direction, but during after hours trading seems to change direction for no apparent reason. Why?
Today for example I was excited because my holdings in RZLV were up, I believe 8% at one point. Then they announced that they were issuing more shares of stock, and the stock crashed. Hard. Finishing the day down 23% (bastards...). The chart right up to closing time was heading down. BUT! Look at the stock price that it is trading at after hours, and it currently is UP 3.6%. Why??
Maybe Im wrong, but I seem to see this reversal in after-hours trading (and sometimes in pre-market trading as well) a lot.
What happens in pre-market or after-hours trading that is different than a normal open market? How is it different? Why would their be these sudden reversals / movements?
I guess related to that, is there any correlation in the direction of after-hours trading and the direction the stock is likely to move in on the following trading day?