Most people who have been involved with the markets for any length of time have heard that saying but it was never as true as last Monday’s price action on Monster Beverage Co. (MNST). A little over two hours into the trading day, the Wall Street Journal reported that Coke was planning to get into the energy drink game and would buy Monster. As you can guess, the price of the stock shot straight up on the rumor.
The problem was that it was just that, a rumor. More and more news outlets picked up the story and the price of the stock jumped nearly $20 a share in less than 15 minutes! After a large retracement, the stock settled a bit and even offered an intraday trade between a supply and demand zone that would have netted a trader a nice… Continue Reading
