$Mustang Bio (MBIO.US)$ are company that cure cancer, why ca...

Edisonlin : Because short term

Arrayfunction : The price is just correcting.It was massively overbought in the past couple of days. If you look at the metrics that combine price and trading volume, you can see how unstable growth like that is.

Huge spikes in volume simply aren't sustainable. Gotta remember psychology rules the markets - not math. The price starting shooting up -> you get a mix of people jumping onto the bandwagon and those happy to finally get rid of a stock they were taking a loss on.

As more and more people jump on the trend to buy, there will always be an artificial spike because all the people looking to sell at first chance of profit are already gone and most shares are now in the hands of people waiting for the price to go up.

When the people looking to buy outnumber the sellers by that much, there will be a 2nd faster price spike because the few sellers still around can ask a lot more. This eventually reaches an inflection point.

Eventually, the least risk tolerant of new buyers begin to liquidate to secure their gains. This massive (relative) increase in selling volume is noticed by other new buyers and they emotionally sell in response because they are afraid they will miss their chance at profit.

This largely causes that 2nd fast price spike to be undone and a new price equilibrium is reached once all the reactionary trading cools off.  It is still much higher than it was say a week ago, but it's unlikely to go on another run like that unless there is some meme stock aspect to it.