Monster Worldwide Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Monster Worldwide (NYS: MWW) slumped more than 10% in early trading before closing down around 7%.

So what: Trading volume ended above the stock's three-month average but not so much as to suggest an influx of deep-pocketed institutional sellers. Instead, it seems investors fear the unintended consequences of legislative efforts to put Americans back to work.

Now what: But that's also a guess based on today's headlines. It's just as likely that technical traders and computer modelers -- seeing Monster in a "bearish trend" -- are selling or shorting to take advantage of the downturn. I'd rather bet to the long side with a little options-induced leverage. Do you agree? Would you buy at current levels? Please weigh in using the comments box below.

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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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