Back to Back Issues Page
The Inner Circle, Issue #403 - America is Not Buying It
December 29, 2013
Hi <>,

America is Not Buying It



America is Not Buying It.

Argument for Intel (INTC):

Anytime a quality company becomes available at depressed prices, (IMO) it should be bought.

MarketClub's Trade Triangle Technology algorithms now rank INTC primary trend 'up'.

INTC is now the 4th of 10 highest dividend yielding stocks in the 'Dow Dogs' (3.50%).

INTC is now the 2nd of 5 lowest priced stocks among the 'Dow Small Dogs'.

Earnings are rising.

Week ending 12/27 INTC closed 25.60 (above the 50 SMA on the daily chart - Favorable).

Stocks rise until they meet resistance then reverse until they find support.

Key primary trend algo to watch: 9/3 low 21.97 (lowest low - last 3 mo).

Recent potential resistance pivot point: 12/27 25.80 (highest high - last 3 wk).

Recent support pivot point: 12/13 24.16 (lowest low - last 3 wk).

Critical: 50 SMA crossed above 200 SMA on weekly chart = 'Golden Cross' (favorable).

Earnings: 5 yr avg EPS: 1.74. TTM EPS: 1.85. Current P/E: 13.84. Forward P/E: 13.57.

Est Avg Yr EPS: 1.89. Est Yr High EPS: 2.01. Est Yr Low EPS: 1.80 (per analysts).

Next earnings date: 1/16.

The combination of low price/high yield + support at the 50 & 200 SMA = opportunity (IMO).

Whether you buy stock, protect with puts (& collect dividends) or buy calls (whatever suits your style), a limited risk/high reward position can be constructed. Each strategy has its own follow-up tactics, depending on how it plays out.

UnitedHealth Group (UNH) Warning: Political Risk (Obamacare)?

Week ending 12/27 UNH closed 74.69.

UNH currently above its 50 & 200 SMA on both daily & weekly charts (bullish).

MarketClub's monthly 'Trade Triangles' ranks UNH up in both primary (monthly) and weekly trends.

Critical: Are we witnessing distribution during rising prices taking place? Entire health insurance industry?

Week ending 9/20 'Bearish Engulfing + 6' candlestick formation (weekly chart) indicates serious liquidation took place.

Reportedly health insurers received bad data from federal government causing heavy sell off.

Recent potential resistance pivot: 12/27 high 75.32. Currently testing 10/16 high 75.49.

Key primary trend resistance algo to watch: 9/16 high 75.88 (highest high - last 3 mo).

Recent support algo to watch: 12/17 low 70.20 (lowest low - last 3 wk).

Key primary trend support algo to watch: 10/28 low 66.72 (lowest low - last 3 mo).

Earnings are rising.

Earnings: 5 yr avg EPS: 4.41. TTM EPS: 5.29. Current P/E: 14.12. Forward P/E: 13.63.

Est Avg Yr EPS: 5.49. Est Yr High EPS: 5.57. Est Yr Low EPS: 5.45 (per analysts).

Next earnings date: 1/16.

Cisco Systems (CSCO):

Week ending 12/27 CSCO closed 22.02 (Yield: 3.23%).

CSCO is currently 9th of 10 highest yielding 'Dow Dogs'.

CSCO is currently 1st of 5 lowest priced among the 'Dow Small Dogs'.

Key primary resistance algo to watch: 9/18 high 24.80 (highest high - last 3 mo).

Key primary support algo to watch: 12/13 low 20.22 (lowest low - last 3 mo).

CSCO currently above the 50 SMA & below the 200 SMA on daily chart (mixed). Weekly chart: Just the opposite, below the 50 SMA & above the 200 SMA (mixed).

Possible resistance: 10/24 low 22.10.

Earnings are rising, so far, (management lowered forward sales projections).

Earnings: 5 yr avg EPS: 1.37. TTM EPS: 1.84. Current P/E: 11.97. Forward P/E: 11.03.

Est Avg Yr EPS: 1.98. Est Yr High EPS: 2.03. Est Yr Low EPS: 1.86 (per analysts).

Next earnings date: 2/12/14.





Comments? Ideas? Feedback? Let me have it, right between the eyes! I'd love to hear from you. Just reply to this zine and tell me what you think!
Back to Back Issues Page