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The Inner Circle, Issue #428 - No One Believes You!
June 22, 2014
Hi <>,

No One Believes You!

FROM: No One Believes You! (Paul Ryan to IRS Commissioner).

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 6/20 CSCO closed 24.83 (Yield: 3.08%).

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: 3/17 low 21.27 (lowest low - last 3 mo).

CSCO recent algo: 5/23 low 24.35 (lowest low - last 3 wks).

CAUTION: Is CSCO forming a 'Head & Shoulders' top or 'Double Bottom' (6/4 & 6/17 lows) preparatory to an upside breakout above 6/11 high 25.17? (daily chart).

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

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

Earnings are rising.

Earnings: 5 yr avg EPS: 1.37. (ttm) EPS: 1.48. Current P/E: 16.78. Forward P/E: 12.11.

Est Avg Yr EPS: 2.04. Est Yr High EPS: 2.06. Est Yr Low EPS: 2.03 (per analysts).

Next Qtr Est Avg EPS: 0.53. Est High EPS: 0.54. Est Low EPS: 0.51. Prior Qtr EPS: 0.42.

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, puts or do 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 under attack.

Next earnings date: 8/13/14.

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!
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