MSTZ: Utter Annihilation Of Capital

Mike Fay
5.6K Followers
(9min)

Summary

  • As expected, the Nasdaq 100 has rallied over 20% from April 7th lows, leading to directional uncertainty and potential sell pressure in May.
  • There are likely to be solid opportunities to sell the market in May, but I would still caution against shorting MSTR through MSTZ.
  • Bitcoin's technical setup actually looks quite good in my view, and that means MSTR may continue to rally despite my concerns about MSTR common stock.
  • Despite not being bullish on Strategy common stock at this time, I would still avoid the T-Rex 2X Inverse MSTR Daily Target ETF.
Bearish scenario on Bitcoin price

bennymarty/iStock via Getty Images

On April 11th, I wrote the following in my coverage of the ProShares UltraShort QQQ ETF (SQQQ) for Seeking Alpha:

If history is a guide, the performance of the Nasdaq on April 9th is potentially a strong indication that there are

This article was written by

5.6K Followers
Former media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of STRF, BTC-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I'm not an investment advisor.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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