The SpaceX Trade
The anatomy of the SpaceX trade + the potential next big trade.
This was arguably one of the biggest opportunities of the year.
The most anticipated lockup expiration in history was surely going to go lower, there was so much supply coming to the market right?
Wrong.
SpaceX is up 40% off the low from where everyone said it was going lower because of a massive amount of supply that was supposed to hit.
The market works in funny ways. When everyone expects one thing to happen it’s very common for the complete opposite thing to happen.
These types of trades and scenarios arise in the market from time to time, it’s important that you’re able to recognize them and take advantage when the next opportunity arises.
The day of the lockup expiry, I sent a notification out to subscribers that I bought SPCX @ $109. I had made SPCX the main focus in my weekly market report here so we were ready for the opportunity.
If you want to see these opportunities yourself before they happen using a combination of history, psychology, and technical analysis, this article will be a good one to to come back to.
At the end of this article I’ll discuss my newest positon as well.
I want to quickly mention that last week I posted an article on what I believe is the next big AI trade here.
It's working well and starting to take off but in no way do I think it’s done yet.
I own two of the stocks mentioned but I think there’s plenty of gas left in the tank. Almost nobody is talking about this, still… you want to be early to these trades!
This trade feels similar to when I highlighted CPUs here and spotlighted:
AMD @ $200
INTC @ $45
ARM @ $140
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post all of my new trades as I enter them. I walk through the trade idea entirely including my thesis, risk level, cost basis, and more.
The subscriber chat is also where I post a daily thread with my thoughts on the day ahead, relevant headlines and macro events, my main focus names, notable upgrades and downgrades, and anything else I’m watching.
It’s basically become a live market group chat. We have a ton of smart people sharing ideas, setups, headlines, and observations throughout the day, and there’s a lot of genuine alpha in there.
I honestly believe it might be one of the most (if not the most active) subscriber chats on Substack.
Come join us!
In the remainder of this article, I’m going to discuss:
My thesis behind the SpaceX idea
What to look for in these big opportunities
The psychology behind a big trade
How to spot these types of trades on your own
My entry strategy
My new position that might run back the SpaceX playbook
And more.
If you want to learn to fish and learn to become a self sufficient trader, reviewing big trades is one of the most effective ways you can do that!