What happened

Shares of MOGU (NYSE:MOGU) rocketed 60% higher during trading on Tuesday, though by the market's close it ended up "only" 24% higher.

So what

There was no apparent news that should have triggered the surge, other than the Chinese fashion and lifestyle company's announcement yesterday it would be reporting fiscal first-quarter earnings next week. While investors might be hopeful about what this small-cap stock will report, it's doubtful they're that excited.

Volatility ahead warning sign

Image source: Getty Images.

Now what

Massive spikes in the share price -- and equally large declines -- have been the hallmark of MOGU's stock lately. Most recently, at the end of July, it shot 60% higher on no news again -- only to give back almost all the gains over the next three weeks, before mounting this latest rally.

With the stock oscillating between $2 and $3 a share, investors should be accustomed to the roller-coaster ride MOGU offers. The biggest gains today were once again given back, and it may be another month before it attempts its next big move.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.