Equity Clock

Coca-Cola Enterprises Inc., Kellogg Company, Merck & Co. Inc. – Technical Analysis

Today’s report highlights all of the stocks that are just now starting to show signs of rebounding, having not participated in the recent market advances.   These stocks reveal a MACD that has bottomed out and is currently rebounding, and are revealing money flowing into them by producing Bullish Centerline Crossovers with respect to the Money Flow Index.

Highlighting: COCA COLA ENTRPR INC (NYSE:CCE), KELLOGG CO (NYSE:K), MERCK CO INC (NYSE:MRK), Micron Technology, Inc. (NASDAQ:MU)

We are starting to see technicals that are closer to that of the end of last year.   Last week the market powered upwards, producing gains each day, and disguising itself of what you might consider a stable market.   Over 61% of stocks reside above their 50-day moving average and another 85% above their 200-day.   Stocks continue to claw back from the losses they’ve been subjected to since the beginning of the year, now down only a fraction of a percent since we opened the year.   Of the 678 stocks analyzed, 423 advanced, 242 declined, and the remaining 13 stayed flat on the day.   An average gain for each stock of 0.34% came with an almost 9% increase in volumes from previous day.

Chart courtesy of StockCharts.com
COCA COLA ENTRPR INC (CCE)
	19.74	-0.13 (-0.65%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
19.57	19.65	19.75	19.83	19.93
Expected Short-Term Trading Range: 19.47 – 21.26
Support & Resistance Analysis		Neutral
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Below/Thinning		-0.340
RSI Analysis		Bearish		RSI
Stochastic (Fast) Analysis		Neutral		42.577
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		42.254
Critical Level Analysis
COCA COLA ENTRPR INC (CCE) Seasonality
Analysis has revealed that with a buy date of October 16 and a sell date of February 13, investors have benefited from a total return of 211.64% over the last 10 years. This scenario has shown positive results in 8 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of October 13 and a sell date of February 13, producing a total return over the same 10-year range of 195.29% with positive results in 9 of those periods.
The buy and hold return for the past 10 years was 17.06%.
Comments:
The fundamentals for CCE are sound, currently trading at a multiple of 13 compared to its earnings; higher than its forward P/E of around 10, implying growth. Albeit the seasonality indentified above has come to a conclusion, the influences didn’t quite make an impact over this past period. Past history details a picture of the stock weakening until the beginning of March, at which time it finds gains of 5% – 7% into June. The stock appears to be coming off its lows and set to make a breakout.
News Headlines for COCA COLA ENTRPR INC (CCE)
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Chart courtesy of StockCharts.com
KELLOGG CO (K)
	53.2	+ 0.19 (0.36%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
52.55	52.87	53.14	53.46	53.73
Expected Short-Term Trading Range: 52.48 – 54.83
Support & Resistance Analysis		Broke Lwr Resistance (1)
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Below/Thinning		-0.247
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Neutral		49.080
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		36.857
Critical Level Analysis
KELLOGG CO (K) Seasonality
Analysis has revealed that with a buy date of February 10 and a sell date of December 28, investors have benefited from a total return of 272.24% over the last 10 years. This scenario has shown positive results in 9 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of February 10 and a sell date of October 5, producing a total return over the same 10-year range of 263.7% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 130.1%.
Comments:
This equity has just recently bottomed out and is primed to continue its upward climb. Seasonal influences are just coming into play for this equity, occurring much sooner than the sector in which it operates that finds strength around the end of April. Growth prospects remain favorable through the end of the year.
News Headlines for KELLOGG CO (K)
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Chart courtesy of StockCharts.com
MERCK CO INC (MRK)
	37.49	+ 0.2 (0.54%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
36.94	37.22	37.42	37.70	37.90
Expected Short-Term Trading Range: 36.66 – 39.98
Support & Resistance Analysis		Neutral
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Below/Thinning		-0.227
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Neutral		48.930
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		43.687
Critical Level Analysis
MERCK CO INC (MRK) Seasonality
Analysis has revealed that with a buy date of October 11 and a sell date of December 31, investors have benefited from a total return of 136.21% over the last 10 years. This scenario has shown positive results in 8 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of April 29 and a sell date of May 8, producing a total return over the same 10-year range of 20.37% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was -18.76%.
Comments:
This stock is another that is set for growth this year and analysts are resoundingly saying "Buy". Technicals have lined themselves up for an entry point, however don’t expect the seasonals to help you, having shown a history of staying rather flat over the next two months. A long-term play at current levels may be in order, just don’t expect a quick gain.
News Headlines for MERCK CO INC (MRK)
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Chart courtesy of StockCharts.com
Micron Technology, Inc. (MU)
	8.9	+ 0.14 (1.6%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
8.42	8.66	8.90	9.14	9.38
Expected Short-Term Trading Range: 8.58 – 10.66
Support & Resistance Analysis		Broke Upr Resistance (2)
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Below/Thinning		-0.258
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Neutral		46.501
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		54.545
Critical Level Analysis
Micron Technology, Inc. (MU) Seasonality
Analysis has revealed that with a buy date of December 15 and a sell date of June 10, investors have benefited from a total return of 608.33% over the last 10 years. This scenario has shown positive results in 6 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of March 12 and a sell date of June 7, producing a total return over the same 10-year range of 259.17% with positive results in 9 of those periods.
The buy and hold return for the past 10 years was -72.96%.
Comments:
The fundamentals for this stock are dismal, having just achieved its first positive EPS since December of 2006. Future expectations are positive. Share price is closing in on the book value at 6.11 per share, which will act as significant support (plus $2 or so) to hinder downside risk. Seasonal influences are strongly positive in the near term.
News Headlines for Micron Technology, Inc. (MU)
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Equity Clock – By The Numbers will be offered following each trading day.
Disclosure: Mr. Vialoux does not own securities mentioned in this report.
Disclaimer: Comments and opinions offered in this report at EquityClock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities.
Data offered in this report is believed to be accurate, but is not guaranteed.

Stocks mentioned in this post: CCE, K, MRK, MU