It's been a crazy week for investors in SandRidge Energy's (NYSE: SD) stock. Yesterday the stock surged nearly 30% on absolutely no news. Today, the stock is falling and earlier was down as much as 6%, again on no news. In the chart below we can see yesterday's brief pop and then today's subsequent fall.
SandRidge Energy wasn't alone in popping yesterday. Several energy stocks jumped more than 7% with Swift Energy Co. (NYSE:SBOW) up 21% and Northern Oil & Gas (NYSEMKT:NOG) up 10% in what appears to be some bottom-feeding by investors, who are buying up oil stocks that have been severely beaten down this year. These three stocks in particular have been absolutely crushed this year, as we see in the next chart.
Today's sell-off in SandRidge Energy could be some quick profit taking or just over leveraged investors running for the exits.
While shares will likely be very volatile as oil prices keep falling, the real news to keep an eye on are SandRidge Energy's third-quarter earnings. The company expects to release those results Nov. 5 after markets close. That report should give investors a better idea of how SandRidge Energy is managing the plunge in oil prices and what to expect form the company going forward.