MSTRD trade ideas
MSTR 4HRBullish BAT
Vertical dotted line is ULTRA HIGH VOLUME i.e Ultra high volume down bars - trap of Smart Money , Higher volume-Professionals are buying into the public selling
RSI must be over 30 & Price on breaking of ULTRA HIGH VOLUME Candle HIGH with NO SUPPLY i.e place for BUY
Potential Buy
Long MSTR through 3/19.MSTR math closer to fair value at 800 while BTC is around 48k-50.5k channel.
Was overpriced at 1300 when BTC was 45k on 2/9. 665 support was underpriced.
Now that the chart is more realistic I have identified channels optimal for the next 2 weeks leading up to quad witching, assuming BTC stays bullish.
MSTR 1000c 3/19.
MSTR LONGI am late to post this trade.
I am in this trade myself.
It is negative at the moment. I guess it is better than posting a trade that I am in the black at the moment as people may comment that I should have posted earlier.
To buy the 1st pullback after an All Time High is also a possible strategy. However make sure you are consistent. I am still entering on stocks that make All Time High. This is just a value trade so I am sharing this.
All the best.
MSTR bull wedge - 1000+MSTR's announcement of a convertible note to buy yet more BTC seems to have put pressure on the name - presuably people shorting it while buying the convertible bond. This has formed up with a pretty text book looking bull wedge. This has a day or two to break to the upside - so long as BTC actually holds up, I see this going to 1000 or higher in the next few days.
I longed MicroStrategy with a Small Position TodayI must say I adore Chief Executive Officer Michael Saylor and think he is brilliant and a wonderful communicator.
We all know the drill- they have taken out a $650m & a $950m loan at rates under .01% and have been buying bitcoin since sub $12k and then using the capital to pump it up. Which in turn continues to pump-up their own underlying assets which are bitcoins that were acquired at various levels from $10k on up.
They then use the new equity from all the underlying being pumped up and then take out more loans and do it over and over. Rinse repeat. This in essence lets them have a position essentially short the dollar and long bitcoin. Whats funny is people act like this is risky, yet if you think of how much traders are paying using margin (I do not recommend using margin in this manner if you want leverage run option spreads) traders are paying far more in margin interest then 1%.
"MicroStrategy Inc. boosted its convertible debt sale to buy Bitcoin by nearly half and cut the coupon to 0%, making it virtually a straight bet on the price of world’s largest cryptocurrency.
The software maker priced $900 million of senior convertible notes, up from the $600 million announced Tuesday, and gave an option for $150 million more within 13 days. The debt will pay no interest and the company estimates total proceeds of about $1 billion -- enough to buy about 20,000 Bitcoin at current levels."
Source: www.bloomberg.com
Fundamental Figures:
Market Cap 8.5B
Sales $480M
P/FCF 241 (Very high!)
EPS this Y +95.7%
Gross Margin 81%
Net Margin 5.4%
Interesting company, with Institutions owning now 86% of it, and I have read they include the following:
BlackRock Funds 14% 1,060,491 shares
Morgan Stanley Investments 10% 792,627 shares
Vanguard Group 10% 753,268 shares
First Trust Advisors 4.9% 355,600 shares
Mutual Funds also have decent exposure:
iShares Core S&P Small Cap ETF 6.5% 475,526 Shares
First Trust Cloud Computing ETF 4.38% 317,358 Shares
Vanguard Total Stock Market Index 2.78% 201,852 Shares
Vanguard Small Cap Index Fund 2.37% 172,112 Shares
iShares Russell 2000 ETF 2.3% 169,504 Shares
Government Pension Fund 2.14% 155,057 Shares
I longed today at $914, however I will only add to the position at $800 which we can see here is S2 on the pivots:
$800 as well will be where the 20d moving average will be, which is my favorite moving average to long off of after it confirms support. (Red Line)
And finally this is where we will meet the EMA Ribbon.
With the nice runup in Bitcoin today though I did open a small position at this high level. - At least there will be no FOMO feelings.
Good luck trading friends and do your due diligence.
Additional Citation: www.bloomberg.com
MSTR - EW analysis - Up trend MSTR - It is in super uptrend and expecting small move up as 5th subwave of 3rd of 3rd wave up as shown like in chart. Buy it in each three wave sideways correction and profit booking is always a new high level.
Give thumbs up if you really like the trade idea/analysis.
MSTR - February 7, 2021Back on our watchlist is MicroStrategy Incorporated, a company that provides business intelligence (BI), mobile software, and cloud-based services. The company is most known for holding BTC on their balance sheet and advocating for cryptocurrencies' corporate use cases. In the fallout of the GME and WallStBets situation, there is overwhelming anti-institutional and anti-traditional market sentiment growing among retail traders. This, coupled with the increasing popularity of cryptocurrency in the mainstream, could cause BTC to soar in the short run. MSTR allows traders to have indirect exposure to BTC without the complication of holding crypto directly. With the potential for new ATH's this week in BTC, look for MSTR to soar if a breakout begins.
Microstrategy to have a short-lived fall in the near termMicrostrategy to fall to the light blue line. If the crypto selloff continues and bitcoin reaches targets from $24,000 - $27,000, we may see Microstrategy touch the red line before any upside movement. Once the upside movement begins, the rally will be fun to watch - HH
