Hey Five Star Traders,
Just 24 hours after yesterday’s Space Frontier newsletter, the entire space sector is on fire — and it’s no coincidence. We’re seeing a textbook pre-earnings style rally heading into SpaceX’s massive S-1 financial filing (they dropped their first-ever public numbers on May 20-21). Think about it: just like a high-conviction stock running up hard into its quarterly report, the market is pricing in the hype, the backlog, and the sheer scale of what SpaceX is building. Starlink dominance, launch cadence, and the road to IPO are all front and center.
Yes — we could get a classic “buy the rumor, sell the news” reaction once the full details are digested and the initial excitement fades. That happens all the time with earnings. But here’s the bigger picture I’m watching closely: This wave of attention is lifting the entire space economy.
Every public name with real exposure — satellite comms, Earth observation, launch services, infrastructure — is getting a fresh bid. The NASA ETF (the only one with direct pre-IPO SpaceX access) is seeing huge inflows and is now the clear leader in the space ETF space.
The ASTS Breakout
And that brings me to the part that gets me most excited as a trader: High short floats + sector-wide momentum = short squeeze rocket fuel. We’ve already got names like ASTS (my current favorite buy) sitting on multiple squeezes firing, elevated short interest, and clean technical breakouts.
The same setup is playing out across BKSY, PL, FLY, and many of the other NASA ETF holdings. When the whole sector gets this kind of spotlight, shorts start covering fast — and that covering itself becomes the next catalyst.
Phoenix Finder Turbo – Space Stocks
Live Trading Room Trade Follow-Ups (executed today):
ASTS – I took profits in the live trading room after the clean breakout above resistance. The weekly + daily squeezes fired exactly as we discussed, and we locked in gains on the move. Position was sized nicely, and we captured the momentum we were looking for. Still love the long-term story, but we sell strength when it hands it to us.
Check out the next target zone on the screenshot below:
PL – Took profits on Planet Labs for the pre-earnings momentum run. This one ran hard on the SpaceX-driven sector lift, and we banked the gains right into the strength. Great example of riding the short-term catalyst while the whole space complex is in focus. Check out the next target zone on the screenshot below:
Both trades were textbook: we entered on the technical setups we mapped out, the sector tailwinds did the heavy lifting, and we exited into strength instead of hoping for more. That’s how we stay disciplined in these high-volatility names.
NASA ETF
I’m picking up additional shares of the NASA ETF (still my favorite one-click way to own the entire basket + the exclusive pre-IPO SpaceX exposure) and keeping powder ready for any new squeeze setups that pop in BKSY, FLY, or the other names on our watchlist. RKLB is currently consolidating into another 195-minute squeeze!
The overall thesis hasn’t changed — the space economy is just getting started, and the short floats are still very much in play.
The Bottom Line
We may see some profit-taking after the SpaceX news is fully absorbed (classic buy-the-rumor, sell-the-news behavior), but the structural tailwinds for the space economy are only getting louder. The short floats across these names haven’t gone anywhere — and in a sector that’s suddenly on everyone’s radar, those shorts are becoming very uncomfortable. I’ll be watching the reaction to the SpaceX filing like a hawk and will update you in real time in the live trading room on exact levels, position sizing, and any new squeeze setups that pop. The stars are aligning, traders.
To the moon (and beyond),
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