Talk of MSTR Being Added to QQQ (Patreon)
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The addition of MicroStrategy (MSTR) being added to the NASDAQ 100 (QQQ) and S&P 500 has long been expected. This is from Canter Fitzgerald, which is a reliable source. They believe it could happen by December 20.
Inclusion Criteria and Impact:
If MicroStrategy qualifies for inclusion in the NASDAQ 100, based on market capitalization and other criteria, this could lead to automatic buying from funds that track the index. This inclusion could result in a substantial influx of passive investment, potentially causing a significant price surge due to the mechanics of how index funds operate (buying stocks to align with the index composition).
Short Interest and Market Pressure:
The anticipation of MSTR's inclusion has already led to discussions about its impact on the stock's short interest. Stocks with high short interest can experience dramatic price increases when there's positive news, as short sellers might need to cover their positions, which would further increase buying pressure.
I am holding out for this moment.
NFA
h/t Sanjay for the graphic.
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