Highlights:

1. Volatile Swings: The T-Rex 2X Long MSTR Daily Target ETF (MSTU) experienced significant volatility, declining sharply early in the week before a powerful rebound.
2. Friday’s Surge: MSTU closed the week with an impressive 11.72% gain on Friday, August 22, 2025, vastly outperforming major indices.
3. Leverage Amplifies Moves: The ETF’s performance starkly illustrates the double-edged sword of leverage, amplifying both losses and gains tied to MicroStrategy’s stock.
4. Volume Spike: Trading volume on Friday surged to over 67 million, well above its 65-day average, signaling heightened investor activity and conviction.

Did MSTU Just Signal a Bottom After a Brutal Week?

The T-Rex 2X Long MSTR Daily Target ETF (MSTU), a fund designed to deliver twice the daily performance of MicroStrategy’s stock (MSTR), concluded a turbulent week with a dramatic reversal. After a punishing sell-off that saw the ETF’s value plummet, MSTU staged a remarkable rally on Friday, August 22, soaring $11.72\%$ to close at $\$6.10$. This explosive finish capped a week that tested the resolve of even the most bullish traders and put the high-risk, high-reward nature of leveraged ETFs on full display. The performance serves as a potent reminder of the fund’s tight correlation with its underlying asset, MicroStrategy, a company whose fortunes are inextricably linked to the volatile cryptocurrency market.

A Rollercoaster Ride from Peak to Trough

The trading week began on a precarious note for MSTU holders. The ETF opened on Monday, August 18, at $\$6.28$ and pushed to a weekly high of $\$6.55$ before momentum faltered. By Tuesday’s close, the price had eroded to $\$5.46$, marking a significant retreat from the week’s opening levels. The selling pressure intensified mid-week, with the ETF touching a low of $\$5.09$ on Wednesday. This downward spiral reflected investor anxiety surrounding MicroStrategy and the broader tech sector. For traders utilizing this leveraged instrument, the daily decay and amplified losses were particularly acute, as the fund’s mechanics magnify negative returns just as effectively as they enhance gains. This period underscored the psychological toll of holding such a volatile asset, where intraday swings can erase substantial value in a matter of hours.

The Friday Rebound: A Resurgence of Bullish Conviction

Just as sentiment appeared to be at its bleakest, Friday delivered a decisive turnaround. Opening at $\$5.39$, MSTU quickly found its footing and climbed aggressively throughout the session, reaching an intraday high of $\$6.15$ before settling at $\$6.10$. This powerful $11.72\%$ gain not only recovered a significant portion of the week’s losses but also dramatically outpaced the broader market; for context, the Dow Jones Industrial Average (DJIA) rose by $1.89\%$ and the Nasdaq by $1.88\%$. The move was backed by immense volume, with nearly 67.3 million shares changing hands—far exceeding the 65-day average volume of approximately 42 million. This surge in activity suggests a wave of dip-buying and perhaps a short squeeze, indicating that many market participants viewed the mid-week sell-off as an over-correction and a strategic entry point.

Looking Ahead: Navigating the Double-Edged Sword

As investors look to the coming weeks, the trajectory of MSTU will remain a high-stakes affair. The ETF’s performance is fundamentally tethered to the price action of MicroStrategy (MSTR), which in turn is heavily influenced by the price of Bitcoin. Friday’s strong finish could signal a renewal of bullish momentum, but the inherent volatility remains a critical risk factor. Traders will be closely monitoring cryptocurrency market trends and institutional sentiment toward digital assets for clues about MSTR’s next move. The key takeaway from this week is the stark reality of leveraged products: while the potential for outsized returns is compelling, the risk of rapid, amplified losses demands a disciplined approach to risk management and a keen awareness of the underlying market drivers.