Back to Back Issues Page
The Inner Circle, Issue #436 - ISIS
August 18, 2014
Hi <>,



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 8/15 CSCO closed 24.43 (Yield: 3.10%).

CSCO currently ranks 8th 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: 5/7 low 22.43 (lowest low - last 3 mo).

CSCO recent algo: 7/29 high 26.01 (highest high - last 3 wks).

NOTE: Always pay attention to market action around Full Moons & New Moons.

CSCO put in a new lower low pivot point Thursday 8/7 at 24.69 (2 days before Super Full Moon) then turned around and put in a new lower high pivot point Monday 8/11 at 25.37 (1 day after Super Full Moon) establishing a new significant downward resistance trendline (daily chart) from the previous higher high pivot point 7/22 at 26.08 (determined by the breaking of the 8/7 low on Thursday 8/14, reacting to 8/13 earnings report). Expect significant trendlines to hold until markets prove otherwise.

CSCO currently searching for support.

CSCO currently below the 50 & above the 200 sma on daily chart (Mixed).

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

Earnings are rising (as announced after the close 8/13). However, management expects lower revenues going forward, cutting 6000 jobs & concentrating on areas that are growing (such as 'cloud').

Earnings: 5 yr avg EPS: 1.40. (ttm) EPS: 1.48. Current P/E: 16.51. Forward P/E: 11.38.

Est Avg Yr EPS: 2.16. Est Yr High EPS: 2.27. Est Yr Low EPS: 2.03 (per analysts).

Next Qtr Est Avg EPS: 0.53. Est High EPS: 0.55. Est Low EPS: 0.51. Prior Qtr EPS: 0.43.

The combination of low price/high yield + support at the 50 & 200 sma (weekly charts) = opportunity (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.

Next earnings date: 11/12/14.

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