Early Monday morning looks nice for SPAQ stock price, which may be an indicator of a possible rally.
With SPAQ shares up $0.30 during pre-market session investors awaiting the merger kickoff are waking up to some green candles finally.
With 99% of small time investors in a heavy minus trading SPAQ at least a small rally will bring some tears of joy.
Here is the problem for SPAQ
But this is not only a solution for SPAQ shareholders, it is also a problem. If the price starts going up, I have that strange feeling that more and more traders will start selling just to cut their losses.
So, Spartan Energy Acquisition share price might start going up, but no one is expecting a huge rally. The SPAC market’s downfall has erased gains on more than a few sectors this Fall. In fact, it’s pretty hard to find a group that doesn’t have a fat minus under its belt.
And just because some pre-IPO stocks are cheap, this doesn’t mean EV stocks are a screaming buy right now.
By all accounts, the EV market should continue to grow along with the broader economy. But seeing how drawn out this recovery has been, and market watchers’ penchant for rosy forecasts, investors might want to wait for a pullback in these stocks before hopping on the new EV bandwagon.