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The Inner Circle, Issue #434 - Oops?
August 03, 2014
Hi <>,

Oops?



FROM: Oops? The market's 'Maalox moment'?

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 8/1 CSCO closed 25.00 (Yield: 3.01%).

CSCO currently ranks 10th 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: 7/27 high 26.08 (highest high - last 3 wks).

CSCO currently searching for support.

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

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: 16.89. Forward P/E: 12.36.

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 (weekly charts) = opportunity (IMO).

Whether you buy stock, protect with puts (& collect dividends) or buy calls, puts or do debit/credit 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 constantly 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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