MicroStrategy stock price surged hard in 2024, making it one of the best-performing assets this year. It has soared by over 308% this year, beating the S&P 500 index, which is up by 24%. MSTR has also beaten other companies like NVIDIA and Microsoft. 

Bitcoin price surge

The MicroStrategy stock price has soared because of the ongoing cryptocurrency bull run after Donald Trump won the election.

Bitcoin soared to a record high of $76,520, much higher than the year-to-date low of $38,420. It has also jumped by 380% from its lowest level in 2023.

Technicals suggest that Bitcoin’s rally is just getting started. On the weekly chart below, we see that the coin has constantly remained above all moving averages, a signal that bulls were in control for now. 

The recent consolidation was part of the coin’s formation of a cup and handle pattern, one of the most popular bullish patterns. Unlike other patterns, this one takes a long time to form and complete. In this case, it has been forming since November 2021, when Bitcoin price soared to $68,000.

Therefore, because of this pattern, there are rising odds that the price of Bitcoin will continue soaring in the coming months. If this happens, the next point to watch will be at $100,000, which is an important psychological level. Peter Brandt, a popular crypto trader expects the coin to soar to between $130k and $150k.

Most analysts see this happening during the Trump presidency since he will enact crypto-friendly policies. At the same time, his other external policies like tax cuts and trade wars will push Bitcoin higher as the public debt is expected to explode higher over time. 

Bitcoin, which has a supply cap of 21 million coins, is widely seen as a better alternative to fiat currencies and is a hedge against financial instability. 

All these factors are positive for MicroStrategy stock because the company holds the most coins globally. It has 252,300 coins in its portfolio, a figure that Michael Saylor has pledged to continue growing over time. 

Read more: Bitcoin price prediction: 4+ reasons BTC could go parabolic

BTC chart by TradingView

Is the MSTY ETF a good buy?

For an investor, you can invest in Bitcoin or MicroStrategy. Data shows that the MSTR stock does better than Bitcoin when there is a strong bull run in the crypto industry. For example, it has jumped by over 300% this year, while Bitcoin is up by less than 100%.

There are other unique MicroStrategy alternatives to consider. First, there is the YieldMax™ MSTR Option Income Strategy ETF (MSTY). This is an ETF that aims to give users an exposure to MicroStrategy stock, while at the same time, providing them with a regular dividend return. 

The dividend part is important because MicroStrategy does not pay dividend, making it less ideal for income-focused investors. 

MSTY ETF does this by using the covered call strategy. In the first stage, the creators buy a fnancial instrument that resembles the MicroStrategy stock, ensuring that the fund will do well as the bull run continues. 

Another part of the money is invested in call options, which gives users a right to buy an asset at a certain price. This trade comes with a premium payment, which the developers distribute to their shareholders.

The main challenge for the fund is that it could see you miss up more gains when the strike price is hit. This explains why the MSTY ETF’s total return this year is 182% compared to MSTR’s 308%. Remember that the MSTY ETF still has a dividend yield of 186%.

What about the MSTU and MSTX ETFs?

The other alternative to take advantage of the surging MicroStrategy stock is to invest in the T-Rex 2X Long MSTR Daily Target ETF (MSTU) and Defiance Daily Target 2X Long MSTR ETF (MSTX), which have accumulated over $685 million and $477 million in assets, respectively.

The two ETFs have a simple approach for generating returns to their shareholders. They use leverage to ensure that their daily returns are twice that of the MSTR stock. As such, if the MSTR stock jumps by 1% in a day, their gross daily returns will be 2%. 

MSTX and MSTU are fairly expensive funds with an expense ratio of 1.29% and 1.05%, respectively. 

Therefore, if you strongly believe that the MSTR share price will continue rising in the long term, these are the two funds to buy. Because of the low expense ratio, the MSTU fund is even better.

Data shows that the MSTU ETF has jumped by 70% in the last 30 days, while the MSTX has soared by 61% in the same period. 

The best example to look at these is the ProShares UltraPro QQQ (TQQQ) ETF, which has constantly outperformed the Invesco QQQ fund. Its sister fund, ProShares UltraPro Short QQQ fund has fallen by almost 100% over time.

The risk of investing in these funds is that their performance will be worse than MicroStrategy stock retreats.

The post MSTY vs MSTX vs MSTU: Which is the better MicroStrategy ETF? appeared first on Invezz

Aerodrome Finance (AERO) token price has continued its strong bull run this week as investors cheered the Donald Trump win and the rising crypto fear and greed index. The token soared to a high of $1.4 on Thursday morning, up by 250% from the year-to-date low, bringing its valuation to over $967 million.

Aerodrome price rises as Base network thrives

Aerodrome Finance has become one of the top players in the crypto industry in a fairly short period. 

It is a leading automated market maker in the Base Blockchain, which was launched by Coinbase in 2023. 

Data shows that its volume has continued to grow, propelling Base into one of the biggest players in the DEX industry in the past few months.

According to DeFi Llama, Aerodrome V1 handled over $865 million in volume in October. Its website notes that the network has over $1.2 billion in total value locked (TVL), making it the 31st biggest name in DeFi.

More data shows that Aerodrome Finance’s network handled over $1.08 billion in assets in the last 24 hours. It has handled over $4.52 billion in the last seven days, a remarkable thing for a network that has been around for just a few months. 

Aerodrome has beaten other large names in the Base ecosystem like Uniswap, PancakeSwap, BaseSwap, and Maverick Protocol

One of the reasons why Aerodrome Finance is doing so well is that its platform has significantly low transaction costs than other networks like Uniswap and PancakeSwap. 

Additionally, the network is being supported by the growth of the Base ecosystem. For example, the biggest meme coins in the Base ecosystem have a market cap of over $1.5 billion. They include popular names like Brett, Degen, Toshi, Keyboard Cat, and Higher. 

This trend will continue doing well as Base solidifies its state as the biggest layer-2 network in the industry. 

AERO’s surge happened as its futures open interest soared to a record high of over $13 million this week. Open interest is a figure that looks at the amount of unfilled orders in the futures market and is a good indicator of demand.

Most importantly, the AERO token price soared after Donald Trump won the election, a move that will lead to friendlier regulations, as Brian Armstrong, the head of Coinbase noted on Wednesday.

In an X post, a trader going by the user name HashSpike predicted that the Aerodrome token would have 10x gains, which would imply its price soaring to $14 in the long term. 

AERO price analysis

AERO token chart by TradingView

Turning to the daily chart shows that the AERO token price has been in a strong bull run in the past few weeks. After crashing to a low of $0.397 in July, the token has soared to $1.40, its highest point on October 15.

Aerodrome token is nearing the important resistance point at $1.621, its highest point on October 15. It has also jumped above the 50% Fibonacci Retracement point. 

More so, the coin has remained above the 50-day and 25-day moving averages. It has also moved to the weak stop & reverse point of the Murrey Math Lines of $1.367. 

Therefore, the token will likely continue rising, with the next point to watch will be at $2.37, its all-time high, and 70% above the current level. This move will be confirmed if the AERO price jumps above the $1.62. 

On the flip side, a drop below the key support at $0.977, the top of the range part of the Murrey Math Lines will invalidate the bullish view.

The post Aerodrome Finance analysis: crypto pro sees AERO token surging 10x appeared first on Invezz

The GBP/USD exchange rate retreated for six consecutive weeks, reaching its lowest level since August 12. It has retreated by almost 4% from its highest level this year as traders focus on the US election and the upcoming Federal Reserve and Bank of England (BoE) interest rate decisions.

US bond yields jump after Trump’s victory

The GBP to USD exchange rate continued falling after US government bond yields surged to the highest level since July this year after the US election. The ten-year jumped to 4.47%, while the 5-year soared to 4.3%.

This performance was a continuation of what has been happening since September 11, when bond yields fell.

Bond yields rose after Donald Trump won the election on Wednesday. In his campaign, Trump focused on several issues like tax cuts, deregulation, and tariffs. Some of these measures, especially tariffs, will be highly inflationary, which could push the Fed to embrace a more hawkish tone in the future.

Some Trump’s policies could also lead to more geopolitical issues, which will be a positive thing for the US dollar.

Looking ahead, the next important catalyst for the GBP/USD pair will be the Federal Reserve interest rate decision, which will happen on Thursday.

Economists believe that the Fed will decide to cut interest rates by 0.25% in this meeting as it continues to engineer a soft landing for the American economy. The bank has already slashed interest rates by 0.50% in a previous meeting. 

Odds of another cut rose after the US published weak jobs numbers on Friday. According to the Bureau of Labor Statistics (BLS), the economy created just 12,000 jobs in October, while the unemployment rate remained above 4.0%. 

Bank of England’s decision ahead

The next important catalyst for the GBP/USD pair will be the Bank of England decision, which comes a week after Rachel Reeves unveiled her budget. The budget will have tax increases and more spending.

Economists expect that the BoE will also maintain a dovish tone in the coming meeting by cutting interest rates by 0.25%. 

It hopes that these cuts will lead to a stronger economic recovery in the coming months. Besides, recent data has showed that the economy was doing much better than expected. 

For example, the economy expanded in August after contracting in the previous two consecutive months. Also, the manufacturing and services PMIs have remained above 50 in the past few months.

At the same time, UK’s inflation has continued falling and moved below the 2% target zone. The closely-watched services inflation has also continued moving downwards. 

Therefore, a BoE cut will likely not have a major implication in the GBP/USD pair since it has already been priced in by market participants.

Analysts at ING expect the bank to cut, with seven members supporting it and two opposing. If this happens, they see the GBP/USD pair falling by just 50 pips. They wrote:

“Given that interest rate markets since mid-September have re-priced the BoE landing point some 75bp higher, we think upside risks to sterling from BoE communication are quite limited. Instead, a BoE staying focused on the easing cycle this week could see sterling correct lower.”

GBP/USD technical analysis

The four-hour chart shows that the GBP/USD exchange rate has been under intense pressure in the past few weeks. It has dropped from a high of 1.3435 in September to the current 1.2925. 

The pair has constantly remained below the 50-period and 25-period moving averages, implying that bears are in control.

It has also moved below the 61.8% Fibonacci Retracement point. Also, it has formed a small double-bottom pattern at 1.2843.

Therefore, there is a likelihood that it will stage a comeback as the Trump election fears ease. If this happens, it could rise to the key resistance level at 1.3050, its highest point on November 6.

The post GBP/USD forecast: pound could rebound after Fed, BoE decision appeared first on Invezz

The Financial Select Sector SPDR ETF (XLF) has been in a strong bull run and is sitting at its all-time high as investors welcomed Donald Trump. The fund, which tracks the biggest companies in the financial services industry, has risen for five consecutive months, reaching a high of $49.55 on Wednesday.

The XLF ETF has jumped by 31% this year, slightly beating the S&P 500 and Nasdaq 100 indices. Similarly, the SPDR S&P Regional Banking (KRE) ETF has risen for two straight months and is hovering near the highest point since March 2022. 

Donald Trump victory

The XLF ETF jumped sharply after Donald Trump won the election, a move that will likely usher in a new era in the US. 

A likely reason for this is that Trump has pledged to focus on deregulating key industries and cutting taxes more.

Most analysts believe overregulation has stifled growth in some industries, especially in the banking sector. This trend was most evident after the Global Financial Crisis (GFC) in 2008/9 when new regulations stifled banks’ operations. 

As a result, the private credit, often known as shadow banking, has grown and now controls trillions of dollars. Some of the top players in this industry are firms like Apollo Global Management, Blackstone, and Ares Capital. 

At the same time, banks will benefit from low taxes in the next few years. Trump has pledged to slash taxes more and ensure that his previous ones are renewed when they expire in the coming year. 

Still, there are potential risks that could affect the financial industry in the coming years. For one, Trump’s policies are estimated to push public debt up by over $7.5 trillion in the next few years. As a result, total debt will move from the current $35.9 trillion to over $42 trillion in the next few years. 

Soaring public debt means that the US could be at risk as we saw during the mini-budget crisis in the US when most financial assets plunged. 

The other risk is that Trump has pledged to slightly reduce the Federal Reserve’s independence, a move that could put the economy at risk. On the positive side, the US has guardrails in place to prevent these issues.

Federal Reserve interest rate ahead

The next important catalyst for the XLF ETF is the upcoming Federal Reserve interest rate decision scheduled on Thursday.

In it, analysts expect that the bank will continue to cut interest rates to cushion the economy from a hard landing.

The Fed has already delivered a jumbo rate cut this year, but analysts believe that it will move to 0.25% cuts going forward. 

American bond yields have jumped sharply ahead of the Fed decision. The 10-year yield rose 4.44%, while the 30-year and two-year jumped to 4.6% and 4.22%, respectively. That is a sign that they expect the Fed to be less dovish. 

Big banks benefit from low tax cuts in two main ways. First, top companies like Morgan Stanley and Goldman Sachs that have large investment banks will benefit from the potential of mergers and acquisitions (M&A) and initial public offerings.

Unlike Kamala Harris. Trump will appoint regulators who will be more open to consolidation of the US economy. Under Biden, the FTC has stopped numerous deals like Capri’s buyout by Tapestry and JetBlue’s buyout of Spirit Airlines.

Additionally, lower rates may bring back deposits from money market funds, a move that will lead to stronger earnings. 

Also, analysts expect that earnings growth will accelerate in the next few years, mirroring what happened during Trump’s first term.

XLF companies

For starters, the XLF ETF is made up of the biggest financial companies in the US. Berkshire Hathaway is the biggest constituent. Just last week, the company said that its cash balances jumped to over $325 billion. 

The other top names are JPMorgan, the biggest bank in the United States with trillions of dollars in assets under management. JPM is known for its strong performance and its fortress balance sheet. 

VISA is the third company in the XLF fund and is the biggest money processor in the world. Other big names are Mastercard, Bank of America, Wells Fargo, and S&P Global.

XLF ETF analysis

XLF chart by TradingView

The weekly chart shows that the XLF ETF has been in a strong bull run in the past few years. It has now soared by 207% from its lowest level in 2020. 

This week, the fund jumped above the key resistance level at $47.81, its previous all-time high and invalidated the double-top pattern. 

The fund has remained above the 50-week and 25-week moving averages. Therefore, the fund will likely continue rising as bulls target the key resistance level at $60. In the near term, however, there is a likelihood that it will pull back as the election hype eases.

The post Why has the SPDR Financial XLF ETF surged to a record high? appeared first on Invezz

Motorola Solutions stock price has been firing on all cylinders in the past few years even as many people have largely forgotten about it. It soared to a record high of $480 this week, bringing the year-to-date gains to 50%, meaning that it is outperforming most tech stocks.

Motorola shares have risen by almost 200% in the past five years, outperforming well-known brands like Alphabet (GOOG), Microsoft (MSFT), and International Business Machines (IBM). 

Why Motorola Solutions stock is soaring

Motorola Solutions is a global technology company valued at over $77 billion. It is a firm that operates its business through the Land Mobile Radio Communications (LMR), video security, and access control divisions. 

The LMR division manufactures two-way radio and broadband and their supportive software that are used by many government departments globally. In Video, it makes fixed, body-worn, and in-vehicle cameras, while its command center business makes solutions that unify voice, video, data, and analytics solutions for public safety agencies.

Motorola Solutions is what remained when Google acquired Motorola in 2011 for $12.5 billion as it sought to enter the smartphone market. At the time, Motorola was one of the biggest smartphone manufacturers globally. It used to compete with the likes of Samsung, Nokia, and even Philips. 

MSI is now largely unknown because it provides its solutions to government agencies, non-governmental organisations, and other companies.

Its business has done modestly well over time as its revenue moved from $7.4 billion in 2020 to over $10.4 billion in the trailing twelve months. Its profits have also risen from $953 million to $1.46 billion in the same period, which explains why the stock has jumped.

MSI earnings ahead

Motorola Solutions stock price will be in the spotlight on Thursday when it publishes its second-quarter financials. 

The most recent results showed that Motorola Solutions’ revenues rose by 9% in the second quarter to over $2.4 billion. This revenue growth was mostly because of its LMR and video divisions whose revenue rose by 15% to $1.65 billion. 

The revenue growth was offset by its software and services division whose revenue was flat at $977 million. 

Analysts expect that Motorola Solutions’ revenue rose by 8% in the third quarter to $2.76 billion. For the year, they expect that its revenue will be $10.8 billion, followed by $11.46 billion in the next financial year.

There are chances that MSI’s results will be better than expected because it has constantly outperformed expectations in the past few quarters. 

Read more: Build a ‘long-term position in this high-quality stock’: JPMorgan

Valuation concerns remain

Motorola Solutions, as the top player in its industry, deserves to trade at a premium. However, there are signs that the company has become highly overvalued since it is not seeing double-digit growth rates.

According to SeekingAlpha, Motorola has a forward price-to-earnings ratio of 53, almost double that of the sector median of 29. This figure is also much higher than the five-year average of 35. Its non-GAAP P/E ratio of 35 is also higher than the median of 24.

To put these numbers in context, let us look at other large technology companies. NVIDIA, a company that is growing by triple-digits, has a forward P/E ratio of 51.2. Similarly, Microsoft has a forward multiple of 31.37, while Alphabet has a ratio of 21. 

These companies are not only growing at a faster pace but also have higher margins. Alphabet has a gross and net profit margins of 58% and 27%, while NVIDIA has 75% and 55%, respectively. 

In contrast, Motorola Solutions has a gross and net income margin of 50 and 14, respectively. As such, given the choice of these firms, I would not select Motorola Solutions. 

Analysts also believe that Motorola Solutions stock has little upside going forward. For example, the current average target is $464, which is a few points below the present price. 

MSI stock has not received an upgrade in the past few months. Some of the most bullish analysts are from companies like Bank of America, Jefferies, Evercore, and Deutsche Bank.

Motorola Solutions stock analysis

MSI chart by TradingView

The weekly chart shows that the MSI share price has been in a strong unstoppable bull run in the past few years. It has constantly formed a series of higher highs and higher lows.

The stock remains significantly higher than the 50-week and 100-week moving averages. For example, it is almost 20% higher than the 50-week moving average.

Motorola Solutions’ Relative Strength Index (RSI) and the MACD have started to flash red. The two lines of the MACD have made a bearish crossover, while the Relative Strength Index (RSI) has pointed downwards. 

Therefore, there are rising odds that it will have a bearish breakout in the near term. If this happens, it could drop to the key support at $400. 

The post Motorola stock is firing on all cylinders: it’s risky to buy now appeared first on Invezz