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The Inner Circle, Issue #553 - Operation: Mongoose
November 27, 2016
FROM: Operation: Mongoose!
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 'DOWN'.
Week ending 11/25 CSCO closed 30.09 -0.30% (Yield: 3.48%) 4th highest yielding among the DJ-30.
CSCO is currently among the 10 highest yielding DJ-30 'Dow Dogs'.
CSCO is currently among the 5 lowest priced/highest yielding DJ-30 'Dow Small Dogs'.
CSCO key primary resistance algorithm to watch: 9/2 high 31.95 (highest high - last 3 mo).
CSCO recent resistance algorithm to watch: 11/16 high 31.89 (highest high - last 3 wks).
CSCO has found resistance at the 11/18 high 30.36 (IMO).
CSCO currently below the 50 sma but above the 200 sma on the daily chart (Mixed).
CSCO currently above both the 50 sma and the 200 sma on the weekly chart (Favorable).
CSCO currently above both the 50 sma and the 200 sma on the monthly chart (Favorable).
Current downside target on the weekly chart: 29.57 (* = change).
Current upside target on the monthly chart: 32.55 (* = change).
Symmetrical Triangle Info:
NOTE: If the 11/25 low, 29.55, also turns out to be the pivot point low on the weekly chart, a reasonable (IMO) upside target would then be 31.81 (+5.72% from here).
NOTE: IF the 9/2 high, 31.95, also turns out to be the pivot point high on the monthly chart, a reasonable (IMO) downside target would then be 24.10 (-19.91%) from here.
NOTE: The 29 area appears to be an important historical horizontal line (IMO).
Earnings: 5 yr avg EPS: 1.81. (ttm) EPS: 2.09. Current P/E: 14.40. Forward P/E: 12.51.
Est Avg Yr EPS: 2.37. Est Yr High EPS: 2.43. Est Yr Low EPS: 2.30 (per analysts).
Next Qtr Est Avg EPS: 0.56. Est High EPS: 0.58. Est Low EPS: 0.55. Prior Qtr EPS: 0.46.
Next earnings date: 2/16/17.
The combination of low price/high yield + support at the 50 & 200 sma (weekly charts) = opportunity in the intermediate term (IMO).
Whether you buy stock, protect with puts (& collect dividends) or buy calls, puts, or do debit/credit spreads, straddles/strangles, or combinations, ("combo's", my personal favorite), whatever suits your trading 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 the leading company in cyber security; we are constantly under cyber attack.
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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