|Back to Back Issues Page|
The Inner Circle, Issue #406 - Insurers Afraid of Losing Bailouts - NOT!
January 19, 2014
Insurers Afraid of Losing Bailouts - NOT!
Insurers Afraid of Losing Bailouts - NOT! Bailouts's already built into the law.
Congress wrote the law. Congress can change the law. Voters can change Congress.
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 3rd of 10 highest dividend yielding stocks in the 'Dow Dogs' (3.39%).
INTC is now the 2nd of 5 lowest priced stocks among the 'Dow Small Dogs'.
1/15: Day before earnings announced, an opportunity again presented itself to roll-up 'protective' puts at advantageous prices thereby locking in gains without sacrificing further upside potential (beats the hell out of using 'stops'). Did you take advantage?
1/16 After close, management announced expecting lower revenues going forward.
1/17 INTC gets hit hard at opening but closes well off the 25.25 low.
Week ending 1/17 INTC closed 25.85 (above the 50 SMA on the daily chart - Favorable).
Stocks rise until they meet resistance then reverse until they find support.
Key primary trend algo to watch: 10/9 low 22.48 (lowest low - last 3 mo).
Recent potential resistance pivot point: 1/15 27.12 (highest high - last 3 wk).
Recent potential support pivot point: 1/17 25.25 (lowest low - last 3 wk).
Critical: 11/19 50 SMA crossed above 200 SMA on weekly chart = 'Golden Cross' (favorable).
Earnings: 5 yr avg EPS: 1.84. TTM EPS: 1.85. Current P/E: 13.97. Forward P/E: 14.03.
Est Avg Yr EPS: 1.89. Est Yr High EPS: 2.12. Est Yr Low EPS: 1.70 (per analysts).
Next earnings date: 4/15.
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.
UnitedHealth Group (UNH) Warning: Political Risk? (Obamacare).
Week ending 1/17 UNH closed 72.52.
UNH below its 50 & above 200 SMA on daily chart (mixed).
UNH above both 50 & 200 SMA on weekly chart (favorable).
MarketClub's monthly 'Trade Triangles' ranks UNH up in both primary (monthly) and weekly trends (favorable). So what's the problem?
Critical: Are we witnessing distribution (informed selling) taking place on the way up? Applicable to the entire health insurance industry?
Week ending 9/20, 'Bearish Engulfing + 6' candlestick formation (weekly chart) indicates serious liquidation took place.
Reportedly health insurers received bad data from federal government causing heavy sell off.
Recent potential resistance pivot: 1/7 high 77.33.
Recent support algo to watch: 1/16 low 72.15 (lowest low - last 3 wk).
Key primary trend support algo to watch: 10/28 low 66.72 (lowest low - last 3 mo).
Earnings are rising (favorable).
Earnings: 5 yr avg EPS: 4.57. TTM EPS: 5.29. Current P/E: 13.71. Forward P/E: 12.97.
Est Avg Yr EPS: 5.61. Est Yr High EPS: 5.80. Est Yr Low EPS: 5.45 (per analysts).
Next earnings date: 4/17.
Cisco Systems (CSCO):
Week ending 1/17 CSCO closed 22.74 (Yield: 2.99%).
CSCO is currently 10th of 10 highest yielding 'Dow Dogs'.
CSCO is currently 1st of 5 lowest priced among the 'Dow Small Dogs'.
Key primary resistance algo to watch: 11/13 high 24.00 (highest high - last 3 mo).
Recent support algo to watch: 12/27 low 21.78 (lowest low - last 3 wks).
Double bottom formed between 4/19 low 19.98 & 12/13 low 20.22 (key primary support algo).
Critical: Break this and computer screens light up all over the world. Technically, CSCO would be in deep shit.
CSCO currently above the 50 SMA & below the 200 SMA on daily chart (mixed). Weekly chart: At the 50 SMA & above the 200 SMA (mixed).
Possible resistance: 1/15 high 23.00.
Earnings are rising, so far, (management lowered forward sales projections).
Earnings: 5 yr avg EPS: 1.37. TTM EPS: 1.84. Current P/E: 12.36. Forward P/E: 11.52.
Est Avg Yr EPS: 1.98. Est Yr High EPS: 2.03. Est Yr Low EPS: 1.86 (per analysts).
Next earnings date: 2/12/14.
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!
|Back to Back Issues Page|