Event Date: 13th/14th December 📆
The Nasdaq Rebalancing is a once a year event as stocks get added and stocks get chucked. Each stock that gets added will get a little rally due to massive buying pressure 🥳
¥~Present
The initial bump is between 3-5% usually from the announcement depending on the stock. Usually followed by 2-4% gains in the following days during the rebalancing. MSTR is in a unique position where it can go up 10-20% with any push during this bull rally.
¥~Future - Event
This will create a forced buying event when they are included in the Nasdaq100 as ETFs like that track the Nasdaq100 would need to rebalance their holdings to comply with their fund rules. this occurs in the weeks leading to the official re-balance date.
¥~Risks to thesis =
- Bearish market sentiment
- Other news overshadows
¥~Execution Time Horizon = Next week Execution Options Strategy = 1 MSTR weekly call
¥~Key Dates = Friday after hours + Monday Open
Checks = Previous Nasdaq Rebalance stocks 2023 initially went up on average 3% and 5% overall in a much more bearish environment.
¥~My pick
MSTR: I went for MSTR yesterday but sold out as the price is linked to bitcoin/PPI report at the moment. I have bought again as market was down yesterday due to PPI risk.
MSTR gets the extra boost due to the popularity 🌽 and MSTR is a 🌽 mine. Jim Cramer also questioned Trump on a 🌽 reserve and he responded favorably
Position below (not advice):
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