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The Inner Circle, Issue #460 - Obama Budget: DOA!
February 01, 2015
Hi <>,

Obama Budget: DOA!



FROM: Obama Budget: DOA!

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 1/30 CSCO closed 26.36 (Yield: 2.79%).

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 resistance algo to watch: 1/13 high 28.70 (highest high - last 3 wks).

NOTE: IF the 1/13 high 28.70 also turns out to be the pivot point high on the weekly chart, a reasonable (IMO) downside target would be 25.77. NOTE: 1/30 low 26.32 (.55 above target).

NOTE: IF the 1/13 high 28.70 also turns out to be the pivot point high on the monthly chart, a reasonable (IMO) downside target would be 25.11. NOTE: 1/30 low 26.32 (1.21 above target).

CSCO is currently searching for support on the daily charts (IMO).

CSCO currently below the 50 but above the 200 sma on the daily chart (Mixed).

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 1/30 low 26.32 also turns out to be the pivot point low on the weekly chart, a reasonable (IMO) upside target would be 32.53.

Earnings: 5 yr avg EPS: 1.43. (ttm) EPS: 1.47. Current P/E: 17.93. Forward P/E: 12.84.

Est Avg Yr EPS: 2.12. Est Yr High EPS: 2.25. Est Yr Low EPS: 1.43 (per analysts).

Next Qtr Est Avg EPS: 0.51. Est High EPS: 0.54. Est Low EPS: 0.50. Prior Qtr EPS: 0.35.

Next earnings date: 2/11/15.

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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