Name: How to trade the SpaceX dip
Uploaded: 2026-06-18T18:27:20+00:00
Duration: 600 s

Speakers

Josh Brown — CEO, Ritholtz Wealth Management

Joe Terranova — Senior Managing Director, Virtus Investment Partners

Unknown

Summary

The Investment Committee debates how to trade the dip in SpaceX stock shortly after it began trading publicly, with one member viewing it as a buying opportunity driven by sentiment and lockup mechanics. Joe Terranova details several long positions: Goldman Sachs benefiting from record capital markets and IPOs, the financials sector as the new market leader, Virtu Financial as a play on market making, CME Group with a smooth CEO transition, and re-entering biotech ETF XBI on a breakout. Josh Brown adds his recent purchase of JP Morgan, expecting a new all-time high.

SpaceX decline is attributed to short-term sentiment traders and upcoming lockup expirations; dip viewed as a long-term buy.
Goldman Sachs is highlighted as a top beneficiary of record M&A fees and upcoming mega-IPOs like Anthropic and OpenAI.
Financials sector is the best-performing sector over the past month, supported by a robust capital markets cycle and rotation out of tech.
Josh Brown restored a JP Morgan position above $330, anticipating a breakout to all-time highs.
Joe Terranova recommends Virtu Financial as the only public pure-play on high-frequency and market-making gains.
CME Group praised for a solid succession plan from Terry Duffy to Lynn Fitzpatrick, with growth catalysts in 24/7 trading.
Joe Terranova re-enters XBI biotech ETF following a five-year breakout and market broadening rotation out of tech.

Ideas

Josh Brown CEO, Ritholtz Wealth Management 0:44

SpaceX dip is a buying opportunity.

SpaceX stock is a sentiment play, not a fundamental story near term. The selling is coming from short-term traders who chased the sizzle and are now panicking as the sizzle fades, while lockup-related supply looms. The dust will settle and long-term believers will buy the dip. Price range compression shows price discovery is working, and the stock should consolidate near $200. The dip is a buying opportunity for those wanting the steak, not just the sizzle.

Joe Terranova Senior Managing Director, Virtus Investment Partners 5:00

Goldman Sachs benefits from capital markets boom.

Goldman Sachs is a major beneficiary of the capital markets boom. The firm shattered dealmaking records with $1 trillion in M&A in the first half, the fastest ever to that milestone. CEO David Solomon successfully pivoted the business by focusing on the strongest revenue growth from trading and advisory. Goldman’s stock has surpassed $1,000 and continues to perform well. The firm is also likely to have central roles in upcoming mega-IPOs like Anthropic and OpenAI, keeping deal fees elevated.

Joe Terranova Senior Managing Director, Virtus Investment Partners 5:48

Financials sector strong on capital markets.

The financials sector is making a strong comeback, recently the top-performing sector up 5.5% over the past month. Capital markets are in full swing for the first time since 2021, driven by record M&A and high-quality IPOs like SpaceX, Anthropic, and OpenAI that generate massive fees. Money is rotating out of tech into financials as a new home. The current capital markets cycle is healthier than 2021 due to the quality of companies coming public with billions in revenue.

Josh Brown CEO, Ritholtz Wealth Management 6:47

JP Morgan breaking out to new highs.

JP Morgan is breaking out to new all-time highs after clearing $330. Recent pullbacks are welcome and represent a chance to restore a position. The breakout is in progress and the stock is expected to continue higher. The firm benefits from the same capital markets tailwinds driving the financials universe, including record M&A and trading activity.

Joe Terranova Senior Managing Director, Virtus Investment Partners 7:26

Virtu Financial plays market making trend.

Virtu Financial is the only publicly traded way to get exposure to high-frequency trading and market making, a business that generates strong returns as shown by private peer Jane Street. The stock has already run from the 30s to $62, reflecting the powerful trend in market volumes and volatility. The executive management is well-regarded and the business model is uniquely positioned in the financial ecosystem.

Joe Terranova Senior Managing Director, Virtus Investment Partners 8:26

CME Group well-positioned for continued growth.

CME Group is well-positioned for the future with a smooth CEO transition from Terry Duffy to Lynn Fitzpatrick. Fitzpatrick, currently CFO and President, has been alongside Duffy for years and understands the critical questions around 24/7 trading and perpetual futures. The speaker trusts her ability to navigate these challenges, and the firm continues to be a core holding in their ETF.

Joe Terranova Senior Managing Director, Virtus Investment Partners 9:17

Biotech breakout as market broadens.

The apparent resolution to the military conflict in the Middle East is triggering a broadening out in the market, rotating back into healthcare and specifically biotech. The SPDR S&P Biotech ETF (XBI) has broken out cleanly above $140 on the five-year chart after being bought at 101 in the fall and sold at 130 in March. The breakout signals a fresh uptrend, and re-entering XBI captures the rotation into biotech as the market broadens.

How to trade the SpaceX dip

Summary

Ideas

Up Next