Public trading strategy
SpaceX IPO lifts the whole space sector — buy the dip on Rocket Lab and competit
Thesis
SpaceX's massive IPO is bringing huge attention and mainstream investment money into the space sector. However, smaller space stocks like Rocket Lab actually fell today as investors sold their holdings to free up cash for SpaceX. This creates a temporary discount on solid space companies that are likely to bounce back once the initial SpaceX hype settles and investors look for cheaper ways to invest in the booming space economy.
Strategy approach
Build a mean-reversion strategy for RKLB on the daily timeframe. Enter long when the stock closes down 5% or more from the previous day, and the 14-day RSI is below 35. Exit when the stock closes above its 10-day simple moving average, or after a maximum hold period of 10 trading days. Include a 5% stop loss.
Markets and timeframes
RKLB1D