There’s a lot to be excited about in the market right now.
I’m seeing every sort of day trading pattern out there…
I also see a few hot new sectors that are perfect for swing trading.
In my blog post just last week, I discussed nuclear energy, particularly uranium stocks, for swing trading.
Remember, with swing trading, we expect day-trade-like returns, but they come over a few days, or sometimes a few weeks.
This longer time frame is advantageous for part-time traders or people who don’t want to micromanage their trades, as is required in day trading.
And if stress isn’t your thing, this makes an excellent alternative.
On the other hand, if you’re not interested in waiting months or even years to see a decent gain from a buy-and-hold strategy, swing trading could be right for you.
To learn more about this strategy, watch my intro video series on swing trading.
Anyway, as I told my audience during my Daily Double Down webinar and my Friday Market Update last week, I’ve found some new sectors that are on the move and ripe for swing trading.
Why Space Exploration Stocks Are Heating Up
From the days of watching rocket launches on grainy TV screens to the billionaire space race we’re witnessing today, it’s clear: space is the new frontier.
But here’s the best part – it’s becoming a massive opportunity for investors, and space exploration stocks are heating up in a big way.
But let’s be clear – we’re talking about an industry with huge potential price action, but also a lot of volatility.
That’s why we need to know the players and understand the trends that are making this sector one of the hottest in the market right now.
So why is this sector poised to catch fire?
- Private Companies Have Made Space Accessible
The space game used to be dominated by NASA and government agencies. If you weren’t a major government with billions of dollars in funding, you weren’t going to space, period. But in the last decade, private companies have changed everything.
Companies like SpaceX, Blue Origin, and Virgin Galactic are lowering the cost of space access and expanding what’s possible.
SpaceX, for instance, has cut the cost of launching payloads into space by over 50% compared to traditional rocket launches. That’s game-changing because it opens the door for smaller companies, universities, and even startups to get involved in space-based tech and research.
Lower costs mean more launches. More launches mean more demand for technology, infrastructure, and services that support this growing ecosystem.
And none of that has been lost on investors…
- The Satellite Boom Is Just Getting Started
These little machines are powering everything from global communications to GPS, weather forecasting, and even crop monitoring. And we’re not just talking about a few dozen satellites orbiting the Earth.
We’re talking about thousands of them being launched in the next decade. Elon Musk’s SpaceX’s Starlink is a leader in building a global satellite internet network.
Satellites represent the future of technology and they’re becoming smaller, cheaper, and more efficient to launch.
- Government Contracts and Defense Spending Are Increasing
Government contracts are a huge driver in this sector.
Space exploration is no longer just about scientific discovery – it’s becoming a critical aspect of national defense and security. With increasing tensions between global superpowers, the militarization of space is accelerating, and governments are pumping billions into space defense initiatives.
The big players like Lockheed Martin Corp (NYSE: LMT) and Northrop Grumman Corp (NYSE: NOC) are reaping the rewards, but the trickle-down effect means smaller, specialized space tech companies are also securing lucrative government deals.
When you see these contracts rolling in, you’re seeing long-term stability and growth potential for these stocks.
And in the short term, these government awards are rocket boosters (pardon the pun!) for these smaller stocks.
Look what happened to one of my swing trade names, Intuitive Machines Inc. (NASDAQ: LUNR) in after-hours trading on September 17th. The company announced a $4.82 billion contract with NASA that day after the closing bell.
LUNR 2-Day, 5-Minute Candles Chart; SteadyTrade
It gained around 68%* in just a few hours!
If you’d like to hear what other companies in this sector are on my watchlist, subscribe to my StocksToTrade Advisory service.
Every STT Advisory member gets a monthly newsletter with my stock picks, three weekly videos, watchlists, and more.
Click here to get access to all of the above.
- Space Tourism
Virgin Galactic is already selling tickets for suborbital space flights.
While it might feel far off and inaccessible right now to most of us, space tourism could evolve into a booming industry over the next decade.
Once the ultra-wealthy start making these trips, demand will grow, and eventually, we could see mass-market opportunities.
My Final Thoughts…
Space exploration is no longer a distant dream – it’s a high-growth sector with massive potential for investors.
And the lower-priced names, like LUNR above, are great for swing trading.
That said, this is a young, volatile industry and not every company is going to make it. You need to do your homework, identify the players with real tech and real contracts, and be prepared for the long haul.
If you’re interested in swing trading this hot sector, I urge you to subscribe to our IRIS system.
I created IRIS to apply my long-time swing trading strategy to a tool everyone could use.
Subscribers to the program get weekly analyst reports, training webinars, and best of all, access to the IRIS system itself.
The tool operates much like ChatGPT to produce screeners, trading plans, and more.
If you want to master your swing trading strategy, try our AI-driven tool today!
So whether it’s satellite companies, space infrastructure, or even the dream of mining asteroids, space exploration stocks are here, and they’re hot.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade