Hi,
I’m really trying to understand how it’s possible that a stock (like ASML, for example) opens up 3% right away — only to then drop 4% shortly afterward. I’ve looked into how pre-market trading works, and the most logical explanation I’ve found is: “The caveat is that the pre-market reaction to such news may reverse in the regular trading session.”
I just don’t fully understand how this works, and if I did, I could take it into account for future buys. I bought at the (+3%) open, and it dropped back down to the previous market close level (Friday’s) within a very short time.
Context: I currently own 18 shares of ASML.