As expected, the space stocks surged and then plummeted: $AST SpaceMobile(ASTS.US) was still hitting a 52-week high the day before yesterday, but then dropped 4% after-hours yesterday and plunged -10% pre-market on 5/29, closing at 133.

Before considering whether to catch the falling knife, first figure out why it fell:

I looked through recent news and couldn't find any fatal fundamental negative news—it's more about "it's been hyped too high and needs a breather": In the past two weeks, the entire space sector was ignited by SpaceX's $1.75 trillion IPO expectations and NASA's lunar base plans, with ASTS and small rockets surging consecutively. This kind of purely sentiment and expectation-driven rally, once there's no new catalyst, profit-taking happens this fast. The negative isn't "bad news happened," it's "the good story is over, and the valuation is too expensive."

However, I think: ASTS has the real catalyst of a June satellite launch plan as a cushion. It looks interesting after a pullback, but right now it's "the knife is still falling." I won't catch it now; I'll wait for it to bottom out and see the market sentiment around the June launch.

What's even more critical is $Tradr 2X Long ASTS Daily ETF(ASTX.US), which fell 20.8% pre-market. Leveraged stocks are a double-edged sword in a "pump and dump": great when rising, but your principal can be halved faster when falling, plus there's decay. My conclusion is clear: If you really want to bet on an ASTS rebound, only touch the underlying stock, not the 2x leveraged ETF—catching a falling knife is dangerous enough; adding leverage makes the volatility terrifying 😰