SpaceX IPO hype overflows into the space sector — accumulate satellite and defen
Thesis
When a highly anticipated company goes public, investors who couldn't get shares often buy into related companies in the same industry instead. With SpaceX's IPO being more than four times oversubscribed, there is a massive pool of money looking for exposure to the space sector. This spillover demand tends to lift the stocks of established aerospace and satellite companies in the days immediately surrounding the debut.
Strategy approach
Build a strategy that goes long on aerospace and defense supplier stocks on a 1-day (D1) timeframe 1-2 days before a highly anticipated mega-IPO. Use ARKG or ITA as a proxy basket. Enter when the 10-day average volume is exceeded by 20% and price is above the 20-day simple moving average. Exit after 5 trading days or with a 4% trailing stop.