Public trading strategy
Marvell Technology joins the S&P 500 this week — buy before the forced buying ki
Thesis
When a stock gets added to the S&P 500, automated funds that track the index are forced to buy millions of shares, regardless of the price. Marvell Technology is joining the index on June 22nd. This guaranteed wave of forced buying typically pushes the stock's price up in the days leading into the switch.
Strategy approach
Build a rule-based strategy for a planned entry long on MRVL on June 20 (T-2 days to rebalance). Use a limit order at the current 10-day VWAP. Hold through the June 22 rebalance date, exiting the position on June 25 with a simple 3% trailing stop to capture any post-inclusion momentum.