The applications include a variety of Metaverse and NFT related trademarks
These applications are Monster’s second affiliation with crypto after the SmartFi – AMA Supercross Championship
Recently the New York Stock Exchange too applied for similar trademarks
As crypto adoption soars worldwide, it continues to drag more and more mainstream organizations towards itself. The newest addition to the list is one of the biggest energy drink brands Monster Energy.
The Metaverse Monster Awakens
As per the documents available on the United States Patent and Trademark Office (USPTO) website, Monster Energy wants to enter the famed NFT space. The filings for trademarks pertain to the non-fungible tokens and their ventures regarding the Metaverse.
Of the four trademark filings, the first application has multiple mentions of ‘Downloadable virtual goods’ with items ranging from accessories to vehicles, equipment, and even games.
In another application, specific mentions of ‘Retail store and online retail store services featuring virtual goods’ can be found.
Monster also filed for marketplaces for the categories mentioned above of virtual goods. This application indicates that apart from Monster Energy branded NFTs, the company might also sell digital merch.
If the trademarks were approved, it would mark this as Monster Energy’s second foray into the crypto-verse as just last month it partnered up with SmartFi.
With this partnership, SmartFi became the official cryptocurrency platform for the Monster Energy AMA Supercross.
The championship would prominently feature the SmartFi brand within Supercross television broadcasts with this deal.
Not Alone in the Metaverse
Monster Energy may be a big name in the Metaverse, but it is not the first name for sure.
Under its application, similar mentions of Downloadable digital goods and digital currency, virtual currency, were also found.
And while trademark applications promise a future, Manchester City is already on its way to making its Metaverse future a reality.
Not too long ago, the football club partnered with Sony to build the world’s first football stadium in the Metaverse. A virtual Etihad stadium would be recreated by Sony and be accessible by fans globally.
Slowly and steadily, Metaverse seems to bring everyone into the virtual world.
Stocks are still getting slammed in 2022, especially technology stocks. Of the tech stocks my research firm MAPsignals follows, nearly all the recent activity has been selling (a whopping 92% of all tech signals):
See the red bars? Those are stocks we believe are getting sold. When red bars run rampant, good names can get crushed. They can become what I call “oversold.” When this happens, even great stocks can get caught in the selling rush – and that can mean opportunity.
There are some great stocks being sold right now (not all in tech either). They’re fundamentally sound companies with good histories, which means discounts for long-term investors. Here are five stocks seeing lots of red that appear to be near-term oversold: CRM, INTU, LULU, MNST & AMD.
Up first is Salesforce.com Inc. (CRM), the enterprise customer management software platform.
Even though great companies’ stocks can be volatile, like CRM over the past year, they’re worthy of attention, especially on pullbacks. Check out Salesforce:
1-month performance (-12.9%)
Recent Big Money sell signals
To show you what our Big Money signals look like on a stock, have a look at all the buys (green bars) and sells (red bars) in CRM over the past year:
Clearly, that’s a lot of red, especially this year.
Looking more broadly, Salesforce has been a high-quality stock for years. The blue bars in the chart below show when CRM was likely being bought by a Big Money player and also a high-ranking stock, according to MAPsignals.
When you see a lot of blue, like CRM did in 2017, 2018, and 2020, it can be very bullish:
Those blue signals indicate Big Money buying and strong fundamentals. As you can see, Salesforce’s sales and earnings numbers have been super strong, making it worthy of attention:
3-year sales growth rate (+26.6%)
3-year EPS growth rate (+1,161.0%)
Next up is Intuit Inc. (INTU), the financial management software maker.
Check out these technicals for INTU:
Year-to-date performance (-25.2%)
Recent Big Money sell signals
It’s been getting sold a lot recently:
But now let’s look long-term. These are the top buy signals Intuit has made since 2017. The Big Money has been on it for a while:
Let’s look under the hood. As you can see, Intuit has had rock-solid, double-digit growth in earnings and sales:
3-year EPS growth rate (+17.5%)
1-year sales growth rate (+25.4%)
Another growth name is Lululemon Athetlica Inc. (LULU), the athletic clothing company.
Strong candidates for growth usually have Big Money buying the shares. Lululemon has historically had that. But recently, it’s full of red, which could be an opportunity:
Year-to-date performance (-21.1%)
Historical Big Money signals
Below are the blue Big Money signals LULU has made since 2015. That’s the JUICE!
Now let’s dig deeper. Lululemon’s growth in earnings is impressive, as is its sales growth. I expect more of the same in the coming years.
3-year EPS growth rate (+39.6%)
3-year sales growth rate (+18.6%)
Number four on the list is Monster Beverage Corporation (MNST), which is an energy drink company.
Here are the technicals important to me:
1-month performance (-6.3%)
Historical Big Money signals
Recently, it’s been a steep downward slide, with more Big Money selling than buying:
But Monster Beverage is a cash magnet and Big Money favorite. Below are the Big Money Top 20 buy signals for MNST since 2015:
Let’s look under the hood. Despite the price slide, Monster Beverage has been growing earnings and sales at double-digit rates:
3-year EPS growth rate (+22.6%)
3-year sales growth rate = (+10.9%)
Our last growth candidate is Advanced Micro Devices, Inc. (AMD), a maker of powerful semiconductor chips. Like most technology stocks, it’s been getting beaten up this year:
Check out these technicals:
1-month performance (-13.7%)
Historical Big Money signals
AMD is a high-quality stock since it’s made the Top 20 report. As you can see below, it’s been a Big Money favorite for years. Right now, it’s on a pullback and could be an opportunity.
Now let’s look below the surface a bit. Earnings have been skyrocketing, and there’s been big sales growth too:
3-year EPS growth rate = (+196.2%)
3-year sales growth rate = (+39.1%)
The Bottom Line
CRM, INTU, LULU, MNST & AMD represent the top oversold stocks for March 2022. They’ve been sold a lot lately…perhaps too much. Strong, fundamentally-sound stocks seeing near-term sell signals are worthy of extra attention because of their long-term potential.
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Monster Beverage has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals MNST has made the last year.
The last few days has seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price. Red signals are showing big selling in the shares:
In 2021, the stock has gained a modest 4%. But, MNST just made one of these rare green signals. It came after a solid earnings report. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
1Y outperformance vs. staples ETF (+4.19% vs. XLP)
Outperformance is huge for leading stocks.
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Monster Beverage has been growing revenues and earnings rapidly. Take a look:
3-year sales growth rate (+10.94%)
3-year earnings growth rate (+22.6%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, Monster Beverage has been a top-rated stock at my research firm, MAPsignals, dozens of times the last few years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
MNST has been a Big Money favorite since 2015. And since it first appeared on this report back on 1/13/2015, it’s up 157%. The blue bars below are the times that Monster Beverage was a top pick:
Looking at that chart above, that’s what I call the stairway to heaven! I wouldn’t be surprised if Monster Beverage makes additional appearances in the years to come. Let’s tie this all together.
Monster Beverage continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.
The Bottom Line
The Monster Beverage rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
Disclosure: the author holds no position in MNST at the time of publication.
Amazon executives noted shifting consumer habits as the pandemic eases and people become more mobile. Amazon forecasted the next quarter’s sales at between $106 billion and $112 billion, compared to Wall Street expectations for right around $119 billion.
Amazon’s projections would still represent growth of +10% to +16%. Keep in mind, bears are also pointing to ongoing fears of supply chain hiccups, higher-trending inflation, and new coronavirus outbreaks. Earnings come at a busy pace again today with results from Caterpillar, Cerner, Chevron, CNH Industrial, Colgate Palmolive, Enbridge, Exxon Mobil, Johnson Control, and Procter & Gamble.
The worry on Wall Street is that this new normal rate of growth will be slower than many analysts and trading firms are forecasting coupled with higher inflation and or supply chain dislocations corporate profits could fall under some pressure or in this case be less than Wall Street is forecasting for the next few quarters. Bulls expect more consumer spending will shift from goods and pandemic-related services (delivery, video games, cloud/collaboration software) but are still betting on pent-up demand for things people missed out on during lockdowns, as well as goods and services that are currently in short supply.
Data to watch
Updated inflation data is also on tap with the ISM Manufacturing Index on Monday and the Services Index on Wednesday.
I have mixed feelings about SP500. There are a few signs of weakness. However, it might be the result of low summer activity. Advance-Decline Line is clearly bearish. Insider Accumulation is also not that strong. Moreover, the Volatility Index is very low and potentially it could bring a pullback. In any case, SP500 futures failed to close the week above Gann resistance. And that is also a negative sign.
The Federal Reserve policy is still supportive. But keep in mind, that SP500 has rallied around 100% since the pandemic bottom without any pullback. And the retest of key support zones near 4200 and 4000 is realistic.
On the other hand, the continuation of the rally is also possible but only if price sustains above 4400. If that happens, bulls will target 4500 and 4600 in extension.
The Commerce Department last week reported that the U.S. economy grew at a +6.4% annual rate in the first quarter, slightly below estimates but still strong. If it would have come in real hot and much higher bears would have pointed to fanning the inflation flames even further.
This mindset of “bad-news-could-be-good-news” is helping to keep the stock market at or near all-time highs. If economic data somewhat disappoints it means the Fed stay dovish and accommodative for longer.
That might be important to keep in mind as April data starting this week is expected to be extremely good. The April Employment Report is due next Friday and with upper-end of Wall Street estimates look for upwards of +1 million new jobs being added. Other key April data next week includes the ISM Manufacturing Index on Monday, and the ISM Non-Manufacturing Index on Wednesday.
If the data comes in better than expected the bears will win the nearby battle and have the upper hand when talking higher inflation and the Fed perhaps tightening sooner than anticipated. So this week could be a bit tricky whereas “disappointing-data” could actually be digested as a win for the bulls and “strong data” a win for the bears.
Checking in on U.S. progress against Covid-19, the number of adults that have received at least one dose is around 60%-65%, depending on the source. Global cases continue to rise led by India, where new infections have been hitting new record highs every day for weeks now. The country reported a staggering 380k new infections and 3,645 new deaths on Thursday while less than 10% of the population has been vaccinated.
Bottom line, the global restart will not be synchronized like many bulls had hoped would be the case and global growth may continue to struggle. At the moment the U.S. market doesn’t seem to care. It will be interesting to see if increasing inflation and continued global headwinds will eventually come home to roost.
SP500 technical analysis
Earnings season can bring volatility to the stock market. At the beginning of May, cycles turn to the downside. Note, this is only a timing tool and it never shows the amplitude or strength of the move. When cycles are topping, it means we can expect a move down or choppy trading. This is it.
But relying on cycles only is not a good idea. Insider Accumulation Index shows bearish divergence on a daily chart. At the same time, Advanced Decline Line is still strong. The key resistance is around 4250 at the moment. I believe earning season can bring a profit booking to the stock market. If that happens, watch 4000 – 39500. It was a massive resistance and now it might turn into support. Intermarket Forecast is neutral. But if it turns to the downside, we will finally see a pullback in SP500.