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The Inner Circle, Issue #461 - Diplomacy without Military Power...
February 15, 2015
Diplomacy without Military Power...
FROM: Diplomacy without military power is like music without instruments.
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 2/13 CSCO closed 29.43 (Yield: 2.85%).
CSCO is not currently in the 10 highest yielding DJ-30 'Dow Dogs'.
CSCO is not currently among the 'Dow Small Dogs'.
Key primary support algo to watch: 11/3 low 24.45 (lowest low - last 3 mo).
CSCO recent support algo to watch: 2/2 low 25.92 (lowest low - last 3 wks).
CSCO is currently searching for resistance on the daily charts (IMO).
CSCO currently above both the 50 & 200 sma on the daily chart (Favorable).
CSCO currently above both the 50 & 200 sma on the weekly chart (Favorable).
CSCO currently above the 50 sma but below the 200 sma on the monthly chart (Mixed).
NOTE: IF the 2/2 low 25.92 also turns out to be the pivot point low on the weekly chart, a reasonable (IMO) upside target would be 32.13. NOTE: 2/2 low 25.92 (.15 above previous downside target).
NOTE: IF the 2/12 high 29.58 also turns out to be the pivot point high on the weekly chart, a reasonable (IMO) downside target would be 26.80. NOTE: 26 area appears to be an important historical horizontal line.
NOTE: IF the 12/13/13 low 20.22 also turns out to be the pivot point low on the monthly chart, a reasonable (IMO) upside target would be 31.75.
NOTE: IF the 2/12 high 29.58 also turns out to be the pivot point high on the monthly chart, a reasonable (IMO) downside target would be 23.31. NOTE: 26 area appears to be an important historical horizontal line.
Earnings: 5 yr avg EPS: 1.48. (ttm) EPS: 1.67. Current P/E: 17.62. Forward P/E: 13.65.
Est Avg Yr EPS: 2.16. Est Yr High EPS: 2.23. Est Yr Low EPS: 2.04 (per analysts).
Next Qtr Est Avg EPS: 0.53. Est High EPS: 0.54. Est Low EPS: 0.52. Prior Qtr EPS: 0.46.
Next earnings date: 5/13/15.
The combination of low price/high yield + support at the 50 & 200 sma (weekly charts) = opportunity in the intermediate term (IMO).
Whether you buy stock, protect with puts (& collect dividends) or buy calls, puts or do debit/credit spreads or "combo's" (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 constantly under attack.
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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