The special purpose acquisition company Churchill Capital Corp IV (NYSE: CCIV) caught the attention of Tim Quast, founder and CEO of Market Structure EDGE.
SPAC announced on February 22 that it is merging with Lucid Motors.
“[The] the feeling got to the bottom, so I look at it purely from the point of view of the market structure and say, ‘wow, this is very interesting now,’ “Quast said on Monday on Benzinga’s PreMarket Prep program.
“If you want to make money from something, you leave when the feeling reaches the top and it starts to fall. Then, you come back when the feeling increases.”
Quast stock ideas: The next action on Quast’s radar is Eaton Corp (NYSE: ETN).
“Sometimes you go where people are not and get your return there,” he said, calling Eaton a “great deal to negotiate”.
When the feeling “goes past five, what ended up happening, it tends to be a great time to recognize it,” he said.
PreMarket Prep co-host Dennis Dick said he loves to buy stocks near the peak.
“If that thing can exceed that $ 142 [level], I think you are giving us some good ideas here this morning. ”
Named Quast The Walt Disney Company (NYSE: DIS) as another stock with a short volume that skyrocketed when the options expired.
The volume sold is now below the trend and sentiment is increasing, he said.
“In terms of the market structure, this looks attractive.”
Producer Spencer Israel asked Quast for an update on Palantir Technologies Inc. (NYSE: PLTR).
What’s interesting about Palantir is “how difficult it has been for this stock to recover,” said Quast.
“At some point, the money is coming back for this.”
For reference, the average waiting time for one of Quast’s negotiations is five days.
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