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The Inner Circle, Issue #391 - Introducing The Inner Circle
October 06, 2013
Hi <>,

Introducing The Inner Circle

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'.

Yes, the stock is trading just below the 50 sma (Buy/Sell Line) (daily chart).

However, INTC is the 3rd highest dividend yielding stock in the DJ-30 'Dow Dogs' (3.93%).

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

The stock has been beat down to the point where it is currently testing support at the 200 sma whom the technical analysts reverently refer to as God.

Earnings: 5 yr avg EPS: 1.70. TTM EPS: 1.85. Current P/E: 12.33. Forward P/E: 12.09.

Est Avg Yr EPS: 1.87. Est Yr High EPS: 2.12. Est Yr Low EPS: 1.70.

The combination of low price/high yield + support at the 200 sma = opportunity.

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 charts)indicates serious liquidation took place.

Serious distribution could be taking place currently.

Yes, the stock is above the 'stack' (50sma & 200sma) but that could change quickly.

Yes, MarketClub's monthly 'Trade Triangles' are still ranking UNH in primary up trend... but:

If the 9/20 low (70.40) is taken out, computer screens will 'light up' all over the world (if they haven't all ready).

Forewarned is forearmed.

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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