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The Inner Circle, Issue #394 - Dems Fleeing Obamacare
October 27, 2013
Hi <>,

Dems Fleeing Obamacare

Argument for Intel (INTC):

Anytime a quality company becomes available at depressed prices, (IMO) it should be bought.

Yes, MarketClub's Trade Triangle Technology algorithms rank its primary trend 'down'.

INTC is the 3rd highest dividend yielding stock in the DJ-30 'Dow Dogs' (3.80%).

INTC is also the lowest priced stock among the 'Dow Small Dogs'.

Week ending 10/25 INTC closed 24.24 (week's high). Stocks rise until they meet resistance then reverse until they find support. 7/17 high 24.43 is key algo.

Earnings: 5 yr avg EPS: 1.74. TTM EPS: 1.85. Current P/E: 13.10. Forward P/E: 12.58.

Est Avg Yr EPS: 1.89. Est Yr High EPS: 1.93. Est Yr Low EPS: 1.80 (per analysts).

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 (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.

Warning: UnitedHealth Group (UNH).

Week ending 9/20 'Bearish Engulfing + 6' candlestick formation (weekly chart) indicates serious liquidation took place.

We now know health insurers received bad data from federal government causing heavy sell off.

UNH has put in new lower low pivot point 10/21 (67.09), look for up move seeking next pivot point high (daily chart).

UNH still above 50 & 200 SMA (weekly chart).

MarketClub's monthly 'Trade Triangles' are still ranking UNH in primary up trend but weekly algorithim classifys as declining.

Earnings: 5 yr avg EPS: 4.41. TTM EPS: 5.29. Current P/E: 12.78. Forward P/E: 12.32.

Est Avg Yr EPS: 5.49. Est Yr High EPS: 5.60. Est Yr Low EPS: 5.45 (per analysts).

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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