SpaceX's record IPO is sucking air out of smaller space stocks — buy the dip on
Thesis
When a massive company like SpaceX goes public, it often sucks all the money and attention out of its smaller competitors temporarily. Reports show that smaller space stocks like Rocket Lab and Intuitive Machines crashed as investors rushed to buy SpaceX instead. However, the broader space industry is actually gaining momentum and validation from this IPO. This panic selling in smaller space stocks is likely an overreaction, creating a buying opportunity for these companies once the SpaceX hype settles.
Strategy approach
Build a mean-reversion strategy on RKLB, SATS, RDW, and LUNR. Enter long on the daily timeframe when the stock's RSI(14) drops below 30. Set a stop loss at 5% below the entry price, and take profit when the price crosses back above the 20-day Simple Moving Average (SMA). Hold for a maximum of 15 trading days.