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The Inner Circle, Issue #449 - Voters not so stupid afterall
November 16, 2014
Hi <>,

Voters Not So Stupid Afterall



FROM: Voters not so stupid afterall.

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 11/14 CSCO closed 26.32 (Yield: 2.96%).

CSCO currently ranks 7th 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: 10/15 low 22.49 (lowest low - last 3 mo).

CSCO recent support algo to watch: 10/27 low 23.60 (lowest low - last 3 wks).

NOTE: IF the 11/14 high 26.33 also turns out to be the pivot point high on the weekly chart, a reasonable (IMO) downside target would be 23.40.

NOTE: IF the 11/14 high 26.33 also turns out to be the pivot high on the monthly chart, a reasonable (IMO) downside target would be 22.74.

CSCO currently searching for resistance (IMO).

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

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

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

Earnings: 5 yr avg EPS: 1.43. (ttm) EPS: 1.49. Current P/E: 17.66. Forward P/E: 12.03.

Est Avg Yr EPS: 2.13. Est Yr High EPS: 2.25. Est Yr Low EPS: 2.00 (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: 2/14/15.

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 (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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