#MarketPullback

Understand the Cause

Post-market moves are often driven by:

Earnings reports released after the close

Guidance revisions

M&A news or macroeconomic updates

Low liquidity, which can exaggerate price moves

Check Volumes

Lower volumes in after-hours trading mean price swings can be misleading. Always compare the move with the trading volume to gauge reliability.

Wait for Confirmation

Don’t overreact. A post-market pullback might not carry into the next regular session. Look for confirmation during pre-market or the next day’s open.

4. Watch for Overreaction Opportunities

Sometimes, pullbacks are emotional overreactions, especially around earnings. This can create buying opportunities if the fundamentals remain strong.

5. Adjust Risk Exposure

If you're holding a position that's dropping significantly post-market, assess whether it's a short-term issue or something more serious. Avoid knee-jerk reactions unless there’s a fundamental change.