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The Inner Circle, Issue #431 - Obama Creating Major Health Crisis?
July 13, 2014
Hi <>,

Obama Creating Major Health Crisis?

FROM: Obama Creating Major Health Crisis?

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 7/11 CSCO closed 25.52 (Yield: 2.99%).

CSCO currently ranks 9th 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: 6/25 low 24.41 (lowest low - last 3 wks).

CAUTION: CSCO closed forming a perfect 'doji' (closing price = opening price) meaning, at the end of the day, traders were undecided what to do next. Doji's are extremely important. Traders will make up their minds by Monday's open.

CSCO currently searching for resistance.

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: 17.24. Forward P/E: 12.47.

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 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 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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