Stop-loss on the minds of MNST investors as it was among the worst performers

MONSTER BEVERAGE CORP was among the worst performers on Friday. It lost -1.39% to close at 52.69. It is currently trading -23% below it's 52 week high of 68.91.

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Buy-and-Hold investors in MNST experienced a maximum drawdown of -15.45% over the last three months. It lost -11.77% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +4.82%.

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MNST has been underperforming the SP500 index in recent time, after having outperformed till 27 Jun, 2016. Over the last 2 years 11 months and 10 days, MNST underperformed the SP500 index on 48% days. Which indicates that on days MNST underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months MNST was mostly loss making and delivered on average -0.18% per day. It's best return during this period (of +4.99%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -6.98%) was on Thursday, 13 Dec, 2018. There was initially a bearish trend during this period which started on 28 Sep, 2018 and went on till 4 Oct, 2018. The trend delivered -4.1% losses to investors. This was followed by a bullish trend that started on 5 Oct, 2018 and ended on 9 Oct, 2018. This bullish trend delivered +1.03% to investors.

MNST had 5 profitable and 7 loss making months over the last year. During the last year, MNST underperformed SP500 index on monthly return basis. MNST significantly outperformed SP500 index in Nov 2018, when it returned +12.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MNST had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -24.93%. It is interesting to note that both MNST and SP500 index significantly outperform during months when quarterly/annual results are announced.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

MNST is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in MNST's volatility from 17 Sep, 2018 to 9 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that MNST has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in MNST derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than MNST. Therefore, SP500 must receive a lower allocation than MNST in your portfolio. SP500 index usually has shorter drawdown period than MNST.

On a general note (since you are interested in MNST), MSFT is a large cap that deserves to be closely tracked for investment opportunities.