SpaceX is weeks away from going public, the biggest IPO the financial world has ever seen. 

Retail will flood in from every direction and the hype will spill across the entire sector. 

And when it does, there’s a $2 stock I’m watching that could absolutely explode. While the market gets ready for SpaceX…

The squeeze is setting up right now…

But first, we need to look at bigger space companies.The space sector hype is already in motion. Intuitive Machines (NSDQ: LUNR), a lunar infrastructure company, is up over 80% this year.

We haven’t sent a human being to the moon in over 50 years and this stock is up 81.5%. 

Rocket Lab (NSDQ: RKLB), a space launch and systems company, is up over 40% in the last 30 days alone.

The sector is moving before SpaceX has priced a single share.

But sector momentum doesn’t hit everything at once. The large caps move first (RKLB is a $73 billion company). Then the small caps at the bottom of the chain start to catch the overflow.

There’s one name in particular that has my full attention. And the setup underneath it right now is unlike anything I’ve seen in this sector…

The Best Space Setup

Virgin Galactic (NSDQ: SPCE) is a “space tourism” company that has been essentially doing nothing since suspending flights in 2024. 

But if you look closely, the balance sheet is actually very intriguing…

SPCE has $251 million in cash on the books as of March 31. 

The entire market cap is $249 million. 

Read that again.

$251 million in cash. $249 million market cap.

The stock is trading for less than the amount of cash the company has in the bank.

If SPCE drops too far, someone could buy the whole company just to get the cash, and the business comes along for free. The floor is built into the balance sheet.

Short interest is running at 23% to 27% of the float with 2-4 days to cover. That’s an extremely crowded short position.

On a thin float, when buyers show up, the shorts don’t have a clean exit. They have to buy to cover. That buying pushes the price higher and forces more covering.

And the catalyst calendar is stacking up. The SpaceX roadshow starts June 4. Pricing is June 11. The stock lists June 12. 

Sustained headlines, daily coverage, and retail attention …all building toward a single date. 

Every day that roadshow runs, more traders go looking for a way to play SpaceX.

So how can you make gains? 

Here’s my plan…

How I’m Trading SPCE

I have alerts set at $3 and $3.20.

$3 is the first test. If SPCE clears $3 on real volume, I’m paying close attention. 

$3.20 is where it gets interesting. Above that level with volume behind it, the shorts start feeling pressure and the squeeze has room to run.

I’m not touching it below those levels. Until then I’m watching patiently.  

And keeping my eye on the scanner that finds exactly these types of setups every week…

The Power Signal is my proprietary scanner that flags names with short pressure building before a catalyst hits. Thin float, crowded short, something about to move.

SPCE has all three. 

Stay focused, 

Jack Kellogg

*Past performance does not indicate future results