A stock that has made a large move and continued to rise significantly between 4 AM and 7 AM is predicted to drop at 7 AM when retail traders can begin taking profits.
"When you have a stock that made a really big move the previous day, continued after hours, is continuing even higher between 4 a.m. and 7 a.m. ... I actually expect it's going to drop [at 7 a.m.]... in that instance, I expect selling at 7 a.m."