The broader market averages have been stuck in the red since the opening of trading as the Dow Industrials (INDU) trade down 47 points at 10,432 and Dow breadth is decidedly negative with 7 stocks showing gains and 13 showing a loss. Dow component Coca Cola (NYSE:KO) $51 +1.19% is today's standout. Yesterday in the market monitor we noted that a trade at $51 would be a spread triple top "buy signal" and the stock has accomplished that today.
With relative strength still rather weak, bulls would be best served to establish just partial positions at current levels, then look to add once relative strength turns more positive. KO has had a bullish vertical count associated with its chart since November of last year, hinting at a longer-term price objective of $63.
Coca Cola Chart - $1 box
Shares of KO are doing something today they haven't been able to do in over a year. Trade the $51 level. A longer-term investor may indeed be enjoying a "Coke and a smile" in the next 12-18 months as the longer-term bullish vertical count hints at a price target of $63. Who knows? That may be just about the time that Lucent Technologies (NYSE:LU) said they'd turn a profit to the bottom line.