$MSTR Today’s big bearish candle is down nearly 10%. I don’t think the company itself is the root cause—it’s because it was removed from the index.
Index products are very mechanical: if you’re added to the list, they have to buy; if you’re removed, they can only sell.
At the end of the day, it’s just a one-off rebalancing move, and the market had already priced it in.
But given the size of passive funds, for it to really get knocked down 10% still...
Index products are very mechanical: if you’re added to the list, they have to buy; if you’re removed, they can only sell.
At the end of the day, it’s just a one-off rebalancing move, and the market had already priced it in.
But given the size of passive funds, for it to really get knocked down 10% still...