Equity Clock

Technicals are revealing a buy opportunity at current levels and the fundamentals certainly aren’t unattractive either.  The stock has held a fairly tight trading range as of recent, which has allowed its 200-day moving average catch up to its 50-day.   Unfortunately, the seasonal strengths are not evident at this point in time, not witnessing this positive momentum until the end of June.   Options volumes paint a picture of bullish sentiment with around twice as many calls being purchased for each put.   This is more or less in-line, however, with total equity option volume at present time, so you might not consider it overly bullish at present time.

Having initially declined after announcing the acquisition of its bottler, Coca-Cola Enterprises, The Coca-Cola Company has rallied back significantly to put it back within the expected trading range.   I don’t think I even need to comment on the fundamentals of this powerhouse, but I will point out that the company currently has a 3.22% dividend yield at current levels.   Seasonality going forward is very positive through to the beginning of June, for an average gain of 10%.   Market sentiment using options is implying more of a bearish tone with this stock, currently at almost 1 to 1 (1 put traded for each call).   Average equity volume put/call ratio is a bullish 0.52.   The stock is currently trading within range, but the expectation is that it won’t be for long as it continues on its upward trend.

This stock has a decent seasonal run-up in the month of March as it gains strength from the sector as a whole.   Gains of over 10% have been witnessed on average.  Analysts rate this precious metals company a buy, which is currently trading at the top of its expected trading range.