Equity Clock

Fundamentals of this stock indicate an equity that is overvalued at current levels.   The stock is still well within the expected trading range, but a breakout to the upside may become apparent.   Market sentiment using option volumes indicate that much of the equities in the market are significantly bullish at present time, and this stock is no different with 0.49 puts trading hands for each call.   Equities overall traded today at 0.43 puts for each call.  The concern is that the market has become overly bullish for its own good and may pullback in the short-term.   Seasonality remains strongly positive going forward, but the stock may find stagnant growth in the immediate short-term until sentiment changes. 

Noble Energy Jumps on Volume Growth (Zacks) - Thu, 29 Jul 2010

Noble Energy says commodity prices lift 2Q profit (AP) - Thu, 29 Jul 2010
Oil and gas driller Noble Energy Inc. said Thursday it earned $204 million in the second quarter as growing demand helped push up production and commodity prices.

Leveled! Even Good Reports Like XOM, GT Sink (at Barron's Online) - Thu, 29 Jul 2010

This stock is in exact opposition to that of the energy company profiled above.   Fundamentals are strong and growth prospects are favorable, indicating that the stock may be undervalued at current levels.   Institutions have been shown to be accumulating the stock on net and analysts have rated it to outperform.   Market sentiment again is overly bullish on today’s option volume at 0.21 puts for each call, however, flipping to open interest and an overly bearish picture is revealed at 2.64 puts for each call.  Profit taking on this equity may be evident on Wednesday, however this may present an opportunity for an entrance point.   Seasonality remains very strong between now and the beginning of June, with average gains of almost 22%.  The stock is currently mid-range in its expected scale, having found support around the $42 level, therefore downside risk is low.

How Long Before Range Resources Makes A Deal? (at Forbes) - Fri, 30 Jul 2010

The Dollar-Oil Link And A Continuing Recession, Investing Strategies Through A Historical Lens (Wall Street Transcript) - Wed, 28 Jul 2010

Range Resources Goes on Sale (at Motley Fool) - Wed, 28 Jul 2010