Finding Stock Picks on the Holiday Table

Traders and investors are grateful for many things this Thanksgiving holiday, including a rising stock market, lower volatility levels and the return of congressional gridlock. Indeed, this year's festivities feel a whole lot better than in 2008, when everyone was dead certain the world was coming to an end.

We should all reflect on the good things in life as we sit down at our holiday tables, including family, friends and financial stability. But we can also do a little homework, because the cornucopia of foods sitting there for our enjoyment were caught, processed and distributed by companies that are ticking higher in strong bull market advances.

It's amazing but true that food stocks are acting better than tech stocks these days, in response to a slow-growth environment that favors defense over speculation. These Steady Eddies of the financial world are attracting tons of cash from cautious investors who have seen their nest eggs grow, get robbed and grow again, all in the space of three years.

Coca-Cola (KO) -- Daily Source: eSignal

Coca-Cola(KO Quote) is a case in point. The soft-drink giant sold off from $65 to $37 in the bear market, bottoming out in March and ticking higher in a steady recovery. The stock finally completed a 100% round-trip to the September 2008 swing high last month, paused for a few weeks and then broke out. It's now trading at a 17-month high.

The uptrend probably won't quit until price reaches the nine-year high at $65.59, posted in January 2008. This train has left the station, and I don't recommended chasing it to higher ground. However, defensive stocks tend to pull back whenever there's a surge in risk appetite, so a decline could reach support at around $55, which would mark an excellent entry price.