Stocks quoted in this article:
In a follow-up to a September 21 Market Observation
on Minnesota Mining & Manufacturing (MMM – 95-1/2), the stock heated up by more than one point in Wednesday's trading. This carried the blue-chip issue to its top intraday mark since August 28. Since logging a near-term intraday low on September 20, the shares have gained nearly 19 percent, prompting a bullish crossover of their 10-day and 20-day moving averages. The security is also now trending above all of its significant intermediate-term and long-term moving averages.
Despite MMM's recent success, its Schaeffer's put/call open interest ratio (SOIR) is currently at 0.36, its highest level since late July. As contrarians, we believe that this rise in pessimistic sentiment could have bullish implications for the equity. Check out Schaeffer's Daily Sentiment to learn more about SOIR.