SpaceX IPO is massively oversubscribed — buy the aerospace ripple effect
Thesis
The SpaceX IPO is generating massive mainstream and institutional excitement, drawing billions in capital from massive Middle Eastern wealth funds. This historic event validates the entire aerospace industry, driving fresh investor attention toward established defense and space companies. While retail investors might struggle to get SpaceX shares at the listing price, that demand will likely spill over into publicly traded peers. Buying a basket of related aerospace stocks offers a way to capture the industry-wide momentum without the IPO day chaos.
Strategy approach
Build a rule-based strategy that goes long on aerospace and defense sector exposure using ITA on the daily timeframe. Enter when the 50-day simple moving average crosses above the 200-day simple moving average (Golden Cross) and the RSI(14) is between 50 and 70. Exit with a 5% trailing stop or if RSI exceeds 85.