Warrior Trading Blog

Getting Caught in a Halt

It happened again today!  I got caught in a circuit breaker halt.  If you don’t already know how these work, check out my blog post here where I explain all the details of why they happen and how to handle them. Today I was prepared, and saw it coming.  The ticker was $SEED.  I jumped into the name in the 1.80s and added in the 1.90s for the $2.00 break.  As soon as it broke 2.00 the price on the level 2 got pinned and all I saw were tons of orders going through at the same price.  Whenever I see this I know the stock is about to be halted.  I still have a chance to hit the sell button and bail out, but I decided to hold.  When a stock is halted while it’s squeezing up, it almost always opens higher.  Especially when the squeeze is the result of breaking news.

Here is the headline we got at 10:12am – ” SEED positive – News not on newswires SEC filing only Dupont DD to devleop new seed technology with Origin Agrotech SEED https://www.sec.gov/Archives/edgar/data/1321851/000114420416092691/v436209_ex99-1.htm


As soon as I heard the news I was getting ready to jump in.  When a small cap stock has a deal with a big company, it’s usually a really good sign and investors react accordingly. Today was no different as SEED spiked from the 1.50’s to 2.48.  A nice quick $1.00 pop that represented over 70% increase in value.  It was short lived as the stock rolled over and ended up selling off, but that’s how news often gets played out.  We trade the breakouts and then get out of the way.  Traders in the room did well on this one today!