(MSTZ) T-REX 2X Inverse MSTR Daily - Ratings and Ratios

The T-REX2X Inverse MSTR Daily Target ETF (BATS:MSTZ) is designed to deliver 200% inverse daily exposure to the performance of MicroStrategy Inc. (MSTR), a company that specializes in enterprise analytics and mobility software. By investing in swap agreements, the fund aims to achieve this inverse exposure for at least 80% of its net assets, utilizing borrowings for investment purposes when necessary.

The ETFs non-diversified nature means it is heavily reliant on the performance of MSTR, making it a high-risk, high-reward investment. As an inverse ETF, it is designed to profit from a decline in MSTRs stock price, making it a potential tool for investors looking to hedge against or speculate on MSTRs daily performance.

Analyzing the technical data, the current price of MSTZ is $4.13, indicating a significant decline from its 52-week high of $489.08. The short-term and long-term moving averages (SMA20: $5.71, SMA50: $11.04, SMA200: $61.26) suggest a strong downtrend. The Average True Range (ATR) of 1.59, representing 38.43% of the current price, indicates high volatility. This volatility, combined with the downtrend, may present opportunities for traders who can accurately predict short-term movements.

Considering the fundamental data, the funds Assets Under Management (AUM) stand at $176.57M USD. While this is a relatively modest size, it is sufficient to provide liquidity for active traders. The size and the inverse nature of the fund make it more suitable for short-term trading strategies rather than long-term investments.

Forecasting the future performance of MSTZ requires analyzing both the technical and fundamental data. Given the strong downtrend indicated by the moving averages and the high volatility, if MSTRs stock price continues to rise, MSTZ is likely to decline further due to its inverse exposure. Conversely, if MSTRs stock price drops, MSTZ could potentially rise. However, the 200% inverse exposure means that the funds performance will be highly sensitive to MSTRs daily movements. Traders should closely monitor MSTRs stock price and adjust their strategies accordingly. A potential trading strategy could involve closely watching the ATR and moving averages to identify entry and exit points, taking into account the overall trend and volatility of MSTR.