SpaceX Is Set to Join the Nasdaq-100 on July 7. Here's Where History Says the Stock Could Trade 1 Year From Now.

On July 7, Space Exploration Technologies (NASDAQ: SPCX) is scheduled to begin trading as a member of the Nasdaq-100 index. The Nasdaq-100 comprises the 100 largest non-financial companies listed on Nasdaq, weighted by market capitalization.

For SpaceX, inclusion in the index represents a significant step toward mainstream recognition beyond technology investors. With that said, history shows that inclusion in the Nasdaq-100 rarely serves as an independent driver of sustained outperformance.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue "

Watch out for momentum traders

The anticipation of inclusion in a major index tends to amplify trading volume and expand valuation multiples as momentum traders and growth funds pile in ahead of the official rebalancing date. Let's take a look at what happened with the share prices of some companies that joined the Nasdaq-100 in recent years.