$ALLR could be the best stock to trade for day traders today 5/2/2024

NASDAQ $ALLR (Allarity Therapeutics Inc) could be a leading gainer for the day!

Right around 9:00 the share price had surged to 100%. The catalyst could be that a midstage clinical trial of an ovarian cancer treatment shows promising results. The stock price could climb much higher.

Before the market opening, the price remained close to 100%. This could mean a relatively high confidence of traders’ in this stock. So the prospective view looked even better at this moment. Bought 2000 shares and waited to see what happened. In the first few minutes, the price spiked higher close to $3.45.

Unfortunately, the momentum could not be sustained and the price dropped consistently initially with nearly about 20 million shares sold in a few minutes. The downward trend was consistent and at 4:00 pm at the closing of the market, the price hit the lowest of the day.

What could go wrong?

It is unknown why the stock could not surge as some expected. A treatment intended for ovarian cancer should be a favorable catalyst even though not the strongest. But the overall market performance was disappointing, and traders may not feel comfortable trading too aggressively. The free float of the stock is a bit small which virtually dampens the interest of large players in this stock. One problem is that this stock does not seem to be a stock played too often by large players.

In any case, a skillful day trader can still make some money if he can catch the momentum premarket and during the first few minutes after the market opening.