Anatomy of a Great Trade: MSTR is a Monster

by | Oct 18, 2024

Some stocks are so powerful they can be massive winners for multiple styles.

Take MicroStrategy (MSTR) for example. 

This AI powerhouse was actually a value stock back in 2022-23. 

If you believed AI was a thing, then MSTR was below its “fair value” line in 2022 and early 2023.

Here’s the chart:

If we happened to take the middle arrow entry, we could’ve entered at $14 with “fair value” (the 800-day moving average) up at around $35. 

MSTR made $35 and eventually a whole lot more. 

But if you were a breakout trader, we also got a possible entry in early 2023. 

Chart here: 

In April 2023, it closed for the 2nd consecutive month above the 12-month SMA. 

That entry was $32.84.

The stock is now above $200 and we haven’t seen a sell signal (a close below the SMA) yet. 

Sometimes top stocks in hot sectors can be big winners for completely opposite investors. 

Sometimes everyone wins.

We’ll see.

Happy trading,

— Scott Welsh


 

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