Here’s your trade on Microstrategy ($MSTR) – June 21, 2023
Dan Fitzpatrick here. This is a weekly chart of MicroStrategy ( NASDAQ: MSTR ) here. I was talking to Charles Payne about this, on Fox Business today, as a good short-squeeze candidate.
But first, with respect to that, I will tell you this, my buddy Scott McGregor was the one that told me about this. I had told him that I needed some ideas for short squeezes, what do you think? And this was one that he had suggested and I thought it was a really good idea.
MicroStrategy ( NASDAQ: MSTR ), as you probably know, if you follow them at all. Michael Saylor is their CEO, he’s a huge Bitcoin guy, a huge crypto guy. These guys have like 140,000 Bitcoin, that’s a lot of coin. And so as Bitcoin goes up, and it is, MicroStrategy ( NASDAQ: MSTR ) is going to go right along with it.
One thing that I noticed, I had been working on other stuff so I didn’t really have time to watch Jerome Powell testify, wherever he was testifying, but apparently, he said something like, they consider stable coin to be cash or something like that.
That really got my attention because, first of all, I’ll say it, when I look at the FED, in general, certainly Powell and absolutely Yellen, this is what I think of the FED; and this is why I am kind of a big crypto proponent. Here I am flying at 30,000 feet, 36,000 feet on the airplane, FED Airlines, or something.
Then I wander up to the cockpit to see how the pilots are doing. I open the door and there are a bunch of monkeys throwing apples at each other, eating bananas, and dressed in pilot suits. That is really what the FED is doing here. I will say it, again, it is. The fact that this guy is now saying that they think stable coins are currency is really, really scary to me, but only for the FED and the country, not for Bitcoin.
So the point is, with all the things happening, I am looking at a stock like MicroStrategy ( NASDAQ: MSTR ), with a big Bitcoin component, and I could see this stock running to $400.00. Not tomorrow, not next week, not next month. We could still see some backing and filling going on here, there is no question about it.
But this thing does, certainly, look to me like it has turned the corner and is likely to go higher. So there is very, very high short interest in it, which I like, I like that a lot. Out of a 10.3 million share float, almost 3 million is short, so this is a good move for us. I put it on our Active Trade Idea List. Today you can see the price is 328.10 with a stop at 299.00, so I think this will work.
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