Public trading strategy
SpaceX IPO is sucking all the oxygen out of the room — buy the dip on rival Rock
Thesis
Historically, when a massive new company goes public, it temporarily drains money from similar, smaller companies in the same industry as investors rush to buy the new shiny object. SpaceX is having a historic debut, pushing smaller space stocks like Rocket Lab down today. However, Rocket Lab's actual business hasn't changed overnight. Once the initial SpaceX hype settles, these beaten-down space stocks are likely to bounce back as investors return to them.
Strategy approach
Build a mean-reversion strategy for RKLB on the Daily timeframe. Enter a long position when the stock closes below its lower Bollinger Band (20, 2) and the RSI(14) is below 35. Exit when the price crosses back above the 10-day Simple Moving Average (SMA). Include a 5% stop loss.
Markets and timeframes
RKLB1D