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The Inner Circle, Issue #402 - Obamacare Dead?
December 22, 2013
Hi <>,

Obamacare Dead?

Obamacare dead? Dick Morris says "Yes." If Obama waives penalties, why enroll?

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' (3.58%).

INTC is now the 2nd of 5 lowest priced stocks among the 'Dow Small Dogs'.

Earnings are rising.

Week ending 12/20 INTC closed 25.06 +0.77 (above the 50 SMA - Favorable). Stocks rise until they meet resistance then reverse until they find support. 9/3 low 21.97 is now key algo (primary trend).

Recent potential resistance pivot point: 12/20 (higher high) 25.35.

Recent support pivot point: 12/13 (higher low) 24.16.

Critical: 50 SMA crossed above 200 SMA on weekly chart = 'Golden Cross' (favorable).

Earnings: 5 yr avg EPS: 1.74. TTM EPS: 1.85. Current P/E: 13.55. Forward P/E: 13.28.

Est Avg Yr EPS: 1.89. Est Yr High EPS: 2.01. Est Yr Low EPS: 1.80 (per analysts).

Next earnings date: 1/16.

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).

Critical: Are we witnessing distribution during rising prices taking place? 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.

UNH has put in new lower low pivot point 10/28 (66.72) Note: Lowest low of last 3 months (very weak). Move challenging previous (lower high) pivot point: 10/16 (75.49) failed.

Recent resistance: 12/10 (lower high pivot) 74.41.

Recent support: 12/17 (lower low pivot) 70.20. Currently testing above resistance. Key primary algo: 10/28 low (66.72).

UNH now above 50 & 200 SMA daily & weekly charts (bullish).

MarketClub's monthly 'Trade Triangles' ranks UNH in primary (monthly) up and weekly consolidating trends.

Earnings rising.

Earnings: 5 yr avg EPS: 4.41. TTM EPS: 5.29. Current P/E: 13.87. Forward P/E: 13.18.

Est Avg Yr EPS: 5.49. Est Yr High EPS: 5.57. Est Yr Low EPS: 5.45 (per analysts).

Next earnings date: 1/16.

Cisco Systems (CSCO):

Week ending 12/20 CSCO closed 21.13 (Yield: 3.23%).

CSCO is 8th of 10 highest yielding DJ-30 stocks.

CSCO is 1st of 5 lowest priced among the 'Small Dogs'.

Recent support: 12/13 pivot point (lower low) 20.22. Searching for new resistance.

Key primary algo: 9/18 high (24.80).

CSCO below 50 & 200 SMA daily chart (bearish). Weekly chart: below 50 SMA but found support at 200 SMA.

Possible resistance: 10/24 low 22.10.

Earnings are rising (so far).

Earnings: 5 yr avg EPS: 1.37. TTM EPS: 1.84. Current P/E: 11.48. Forward P/E: 10.66.

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!
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