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The Inner Circle, Issue #396 - Dems Running Scared
November 09, 2013
Hi <>,

Dems Running Scared

Dems running scared.

Argument for Intel (INTC):

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

MarketClub's Trade Triangle Technology algorithms now rank INTC primary trend 'up'.

INTC is now the 4th of 10 highest dividend yielding stocks in the DJ-30 'Dow Dogs' (3.74%).

INTC is now the 5th of 5 lowest priced stocks among the 'Dow Small Dogs'.

Week ending 11/8 INTC closed 24.09. Stocks rise until they meet resistance then reverse until they find support. 8/16 low 21.89 is now key algo.

Earnings: 5 yr avg EPS: 1.74. TTM EPS: 1.85. Current P/E: 13.02. Forward P/E: 12.73.

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 10/28 (66.72) Note: Lowest low of last 3 months (very weak). Look for up move seeking next pivot point high. Previous lower high: 10/16 (75.49). Key algo: 9/16 high (75.88) (daily chart).

UNH broke 50 SMA (Not good). Still above 200 SMA (daily chart).

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

Earnings: 5 yr avg EPS: 4.41. TTM EPS: 5.29. Current P/E: 13.33. Forward P/E: 12.71.

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

Cisco Systems (CSCO).

CSCO is no longer among the 'Dow Dogs' or' Small Dogs'.

Week ending 11/8 CSCO closed 23.51 (Yield: 2.94%).

Earnings: 5 yr avg EPS: 1.37. TTM EPS: 1.86. Current P/E: 12.64. Forward P/E: 10.98.

Est Avg Yr EPS: 2.10. Est Yr High EPS: 2.19. Est Low EPS: 1.96 (per analysts).

Next earnings date: 11/13.

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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