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Rocket Lab's Defense Opportunity 🚀
Ryan Serkes
April 18, 2025
The
Daily Trade
Hey Daily Traders,
Today's newsletter dives into the U.S. single-family housing market, where starts have hit an eight-month low due to tariff-induced cost increases. This trend persists despite falling mortgage rates, as higher building costs deter new projects, with permits for future construction also declining, signaling potential ongoing challenges.
In the stock market, Rocket Lab's recent defense contracts have sparked investor optimism, with shares rising in response to its new roles in U.S. and U.K. defense initiatives. Meanwhile, U.S. airlines grapple with economic uncertainty from trade tensions, and Netflix defies market volatility with strong earnings. In the crypto world, a major dark web marketplace operator faces charges, spotlighting the complexities of policing illegal online activities.
Here's what's happening today:
- 📉 U.S. single-family housing starts hit 8-month low.
- 🚀 Rocket Lab secures major defense contracts.
- 📉 US airlines face uncertainty amid trade war.
- 📈 Netflix beats Wall Street expectations.
- ⚖️ Iranian man charged for dark web drug market.
Question
Do you think Rocket Lab's involvement in defense contracts will significantly boost its long-term growth, or is the stock surge just a short-term reaction?
Reply to this email with your answer
Want to know when to consider trading stocks like Apple and Walmart? These Stock Hotsheets use 10 years of historical data to uncover key dates and trends—helping you trade with confidence
Real Estate  U.S. single-family homebuilding fell to its lowest level in eight months in March, impacted by rising costs from tariffs on imported materials. Despite declining mortgage rates, the tariffs have led to increased building costs, making it less attractive for builders to start new projects. The National Association of Home Builders reported that sentiment among builders remains low, with many citing increased material costs as a significant challenge. Permits for future construction also fell, indicating that the trend may continue. The tariffs have overshadowed any potential benefits from lower mortgage rates, and with new housing inventory levels similar to those last seen in 2007, there is little incentive for builders to continue. Overall housing starts dropped significantly, missing economists' forecasts, and reflecting broader concerns about the economic outlook. Key Takeaway
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Stock Market Rocket Lab USA has been selected for two significant defense initiatives, signaling potential growth in the aerospace and defense sector. The company will participate in the U.S. Air Force's Enterprise-Wide Agile Acquisition Contract and the U.K.'s Hypersonic Technologies & Capability Development Framework. These awards position Rocket Lab to compete for substantial contracts, potentially driving revenue growth. Following the announcement, Rocket Lab's shares surged, indicating strong investor confidence. The company's focus on hypersonic technology and its proven HASTE vehicle are central to these programs. With upcoming earnings and potential new contracts, Rocket Lab is poised for continued growth despite broader market challenges. Key Takeaway
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Stock Market  U.S. airlines face significant uncertainty due to President Trump's trade war, which has created economic volatility similar to the COVID pandemic. With potential recessionary impacts looming, airlines are struggling to forecast their business accurately. While some carriers have withdrawn their full-year outlooks, others have offered varying forecasts, reflecting the industry's lack of confidence. Airlines are cautious about drastic capacity cuts, fearing that the economic situation could change rapidly if trade tensions ease. The domestic travel market remains soft, with airlines using lower fares to stimulate demand. The fluid economic environment poses challenges for airlines, which must balance market share and financial returns. Key Takeaway
|
Stock Market  Netflix reported quarterly results that exceeded Wall Street expectations, showcasing resilience amid economic uncertainty. The streaming giant's revenue and earnings per share both surpassed analyst estimates, driven by strong content offerings and subscriber growth. Despite the potential impact of President Trump's trade policies, Netflix remains confident in its market position. Looking ahead, Netflix projects continued revenue growth, supported by its popular content and pricing strategy. The company has also shifted its focus from subscriber numbers to other performance metrics, indicating a strategic pivot. Analysts believe Netflix's strong market presence will help it weather any economic downturns, with its lower-priced ad-supported tier attracting cost-conscious consumers. Key Takeaway
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Crypto  Federal prosecutors in Cleveland have charged an Iranian man, Behrouz Parsarad, with running a dark web marketplace known as Nemesis. The site facilitated the sale of drugs, stolen financial information, and hacking services, processing over 400,000 orders. Parsarad is facing multiple charges, including conspiracy to distribute controlled substances and money laundering. The indictment follows a collaborative investigation by U.S. and European law enforcement agencies. Nemesis required transactions to be conducted using cryptocurrency, complicating tracking efforts. The case highlights ongoing efforts to combat illegal activities on the dark web, underscoring the challenges authorities face in policing these anonymous networks. Key Takeaway
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Today's Technical Analysis
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Hold | ULTOSC Hold | STOCH Buy |
RSI Sell | MFI Hold | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Buy | MFI Hold | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Hold | STOCH Hold |
RSI Buy | MFI Hold | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Hold | STOCH Hold |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
Disclaimers
The information in our newsletter is not intended to constitute investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described will be profitable. We strongly advise you to discuss your investment options with your financial advisor prior to making any investments, including whether any investment is suitable for your specific needs.
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