You won’t believe what this safe haven is. It’s a monster. (February 04, 2015)
Just a real quick video here on Monster ( NASDAQ:MNST ). The S&P ( INDEXSP:.INX ), all of these are really, really volatile; equities are really, really jockeying up and down, you can see oil ( XOIL.X ), not so much there, here’s more like it ( NYSEARCA:USO ), up and down, all of these things. But the one thing that just kind of seems to keep chugging along is Monster ( NASDAQ:MNST ).
Don’t be fooled by this chart, lower left to upper right, it’s quite steady. In other words it’s not like some super steep uptrend and you can get that impression if you go back here and go, “Oh my gosh, this thing’s on fire.” No, it gapped up it just never filled the gap and that’s a good thing. The stock has been drifting sideways; it’s in a little bit of a volatility squeeze. In other words these Bollinger Bands are squeezing a little bit, they’re a little tight, here was one where it worked really well, here the bands got tight.
Here’s the thing, the bands got a little tight and the stock just wiggled around for a while before it finally started moving up and continued the uptrend. The point of this video is very simple, this is an uptrend, the stock is drifting sideways, it is not overbought, it is in consolidation, it’s in healthy consolidation, and as weird as it sounds, Monster Beverage ( NASDAQ:MNST ) seems like almost a safe haven.
Yes, I said it, it seems almost like here’s the drink where the young teenage knuckleheads with the saggy pants and the backwards baseball hats, or the hats with the flat brims that still have the little authentic sticker on the front; they’re the ones that pour vodka into Monster Beverage ( NASDAQ:MNST ) or “Red Bull” and then they’re wide awake drunks. Or there’s so much crap in here that it’s like heart attack in a can.
I’m not a big fan of Monster Beverage ( NASDAQ:MNST ) as you can probably see, but the good news is you can get it in redneck big gulp size, I mean they come in big ol’ cans that make the “Olde English 800’s” cans look like small ones.
The point is even thought this product is anything but low octane the stock itself is actually in a pretty steady uptrend, rare for this kind of market, for right now. Now you really haven’t been getting any performance in this basically over that last month or so, you haven’t been getting any performance. But the other thing you haven’t been getting is a need for “Zantac” or “Tums” or “Ambien”. This will not keep you up at night nor will it give you acid indigestion; it’s just a nice steady mover with a decent solid uptrend.
Here’s the other thing and then I’m going to let you go, I actually hadn’t even planned on chatting this long but I’m chatty. They don’t announce earning until the end of the month, the week of February the 25th, the estimate is February 25th through March 2nd, something like that. The stock has plenty of time to just kind of trickle higher; not a bad place to have some of your money because it beats the snot out of some of these stocks that are just truly, truly massive E ticket rides that will bring your lunch up.
So anyway, try Monster Beverage ( NASDAQ:MNST ), I never thought I would say this before, but I look at this stock as about a safe haven. Also one other thing, speaking of safety, there’s your stop, right under the 50-day moving average, don’t play with this; if the stock starts to fall below this then this is no longer a safety trade.
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