Public trading strategy
Flex joins the S&P 500 — index fund buying spree incoming
Thesis
When a company gets added to a major index like the S&P 500, massive index-tracking funds are forced to buy its stock to match the benchmark. This forced buying often creates a temporary supply-and-demand imbalance that pushes the stock's price up. You can trade this momentum ahead of the full index fund rebalancing.
Strategy approach
Create a momentum strategy for FLEX on the 1-hour timeframe. Go long when the price breaks above the high of the previous 3 candles. Place a tight stop loss at 3% below entry and take profit at a 4% gain.
Markets and timeframes
FLEX1H