Every trader on the planet is counting down the days to the SpaceX IPO like a kid waiting for Christmas morning.

But Christmas might have come early this year.

Space sector stocks are already blasting.

The hottest one in the group, Solidion Technology (NASDAQ: STI)

It ran 550% in two days. By Friday morning it was printing $57.56 before the market even opened. By lunch, almost half of that was gone.

Boom to bust in one morning, a week before the big event.

If your plan was to show up June 12 and sell into the party… There’s a good chance you will be arriving late.

Because when thousands of degen traders all circle the same exit day, it doesn’t take an evil genius to consider planning an earlier exit.

So you better not be waiting for Christmas Eve to get your shopping done…

This is how I’m trading IPO Week…

Opening the Floodgates

So while the sector is starting to rip, the SpaceX roadshow is in full swing. For scale, the biggest IPO in history before this one raised about $30 billion.

SpaceX is looking to raise $75 billion.

A raise that size needs an insane amount of buyers. More buyers than the institutions that usually eat these deals can supply.

So brokers like Fidelity are suddenly allowing accounts as small as $2,000 to buy SpaceX at the IPO price.

And roughly 30% of the whole deal is set aside for regular traders. IPO shares at the offer price usually go to the big clients first, and regular traders get scraps. Thirty percent is not scraps.

So ask the obvious question: why open the doors to the little guy NOW, at the peak of the hype?

I’m not a conspiracy guy. Nobody’s sitting in a room scheming about how to take your $2,000. They don’t have to.

They’ve got $75 billion of stock to sell, and selling that much means going door to door until they find enough buyers. That’s all the open door is. They need buyers, and you’re one.

So if you’re lining up with crowd, you need to be careful. 

How I Played The Ramp-up Last Week

Careful doesn’t mean sitting out. The runners have been paying all month. You just take the money while it’s being offered.

Ondas Holdings (NASDAQ: ONDS), one of the drone names running with the group, paid me twice on the way up. +$8,040 late in May, and another +$5,215 on Friday.

By Friday, the easy side had flipped. STI hit $57.56 in the premarket, and when it started handing the move back, I shorted it for +$9,126.

Three trades, all green. Both sides of the same group, same week. The runners are paying right now, before the IPO. Not on IPO day.

How Those Names Played Out

On May 22, I gave you three space names with levels to watch. Here’s where they stand now that IPO week is here.

SoundHound AI, Inc. (NASDAQ: SOUN) needed to clear $10. It never did. Topped at $9.52, closed last week near $7.26.

BigBear.ai Holdings (NYSE: BBAI) broke out above $4.50 on May 28, ran to $5.46, then gave the whole move back. It closed near $4.17, flat from where we started.

Sidus Space, Inc. (NASDAQ: SIDU) held its $4.20 line twice last week, then lost it Friday, closing near $4.11.

Levels are entries with conditions. They were never a reason to wait around while the group fades.

The Forecast

I expect more mornings like last Friday. Spikes before the open that hand half of it back by lunch. And plenty more runners. 

This much money and attention pointed at one corner of the market makes stocks run. I’ll be hunting them all week.

The exit door is open for minutes, not days.

So every morning this week, before the open, I’m deciding what I’d sell if the group opens red, and I’m taking the gains I’m given on the day they show up. 

(But this is still my #1 SpaceX week setup…)

Stay sharp,

Jack Kellogg

*Past performance does not indicate future results