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The Inner Circle, Issue #430 - Border Chaos No Accident?
July 06, 2014
Hi <>,

Border Chaos No Accident?



FROM: Border chaos no accident?

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

Cisco Systems (CSCO):

MarketClub's Trade Triangle Technology algorithm currently ranks CSCO Primary (monthly) Trend 'UP'.

Week ending 7/3 CSCO closed 25.19 (Yield: 3.04%).

CSCO currently ranks 8th of the 10 highest yielding DJ-30 'Dow Dogs'.

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

Key primary support algo to watch: 5/7 low 22.43 (lowest low - last 3 mo).

CSCO recent algo: 6/25 low 24.41 (lowest low - last 3 wks).

CAUTION: Is CSCO forming a 'Head & Shoulders' top or 'Double Bottom' (now 'Triple Bottom'?) (6/4, 6/17 and 6/25 lows) preparatory to an upside breakout above 6/11 high 25.17 or downside breakdown? (daily chart). Answer: Upside.

CSCO currently searching for resistance.

CSCO currently above both the 50 & 200 sma on daily chart (Favorable).

CSCO currently above both the 50 & 200 sma on weekly chart (Favorable).

Earnings are rising.

Earnings: 5 yr avg EPS: 1.37. (ttm) EPS: 1.48. Current P/E: 17.02. Forward P/E: 12.35.

Est Avg Yr EPS: 2.04. Est Yr High EPS: 2.06. Est Yr Low EPS: 2.03 (per analysts).

Next Qtr Est Avg EPS: 0.53. Est High EPS: 0.54. Est Low EPS: 0.51. Prior Qtr EPS: 0.42.

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, puts or do spreads (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.

NOTE: CSCO is deeply involved in cyber security; we are under attack.

Next earnings date: 8/13/14.





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!
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