You have to love the energy drink craze here in good ol’ ‘Murica (aka “The United Steaks”). Granted, I’m not really sure what everyone needs so much supplemental energy for. Is that desk job just too overwhelming? Do people need extra “energy” to play a video game? From my observation, it’s more likely to be a sketchy tweaker guzzling down a Monster than someone who is performing actual manual labor.
I have tried a bunch of them: Rock Star, Red Bull, Monster, 5 Hour Energy. Did I feel more “energetic”? I guess…but it also could have been placebo.
To deviate here for a moment, do you want to know what has basically cured my mid-afternoon “crash”? I know this may come as a surprise, but the answer is not “have an energy drink”. Once I eliminated carbohydrates (and specifically ANYTHING containing wheat) from my pre-dinner diet, I have found that I do not get tired in the middle of the day (no matter how much I slept the previous evening).
Believe it or not, but you can maintain a state of heightened awareness without the “help” of energy drinks. Sure I have a couple cups of coffee, but I have always had a couple cups of coffee, and prior to my dietary change, would typically use coffee as a “pick-me-up” in the afternoon (which, after 14 years of daily intake…it doesn’t really work).
Another bonus is that I can eat my breakfast (2 jumbo egg whites+1 whole jumbo egg) at any time in the morning, and not “feel” hungry even at 1PM when I typically eat lunch.
After the New Year, my wife and I are going to go completely “wheat free” for (at least) a month to see how that dietary change will affect our physical and mental well-being. I will try to document my findings here.
Back to my original point: energy drinks…specifically Monster: MNST. (Yeah, I am aware that the company umbrella covers more than just the energy drinks…but they are probably the most recognizable product, and the company is named after said product, so that’s were I’m going). As of the close yesterday, MNST is completing one of my absolute FAVORITE reversal patterns.
There was the “coil” following the huge run-up on 11/27. Next there was the “breakout”. Then the breakout “failed”, which has led to a sublime looking buying opportunity here.
Clearly, there is support in the 51 area, but I believe that the stock is just about done pulling back and is about to take off. I wanted to wait until the close yesterday to start building a position, but this chart was just screaming “BUY ME NOW DUMBASS”, and I couldn’t resist.
The MNST options market is fairly liquid, so I decided to use the January 52.5 calls as my vehicle of choice here. I bought a starter before lunch at 3.10 and then added some right before the close at 3.30.
I’m looking for a rally though the breakout highs with an eye on the 200 day SMA currently a touch over 61. With that in mind, and without fail, I get really antsy whenever an option position shows a profit, so there is a very strong possibility that I sell too soon.
My exit points are simple: if price drops below yesterday’s (12/18) low, I’ll sell a portion of my position. The rest I will hold until it looks like there will be a definitive close below 51.
This is a 2-10 day trade for me. If it blasts higher, I may keep a contract or two around for shits and giggles, but I’m only looking for a quick pop. These kind of patterns either work, or they don’t…I’ll know, likely by this afternoon (12/19), whether or not this trade is going to work.
With that, allow me just reemphasize my initial point: I LOVE this pattern. I have witnessed it many many times and it usually works. If it doesn’t…well, that will be pretty obvious.
Trade ’em well.
My best to you all.