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The Inner Circle, Issue #397 - Repeal and Replace
November 17, 2013
Hi <>,

Repeal and Replace

Repeal and replace.

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 3rd of 10 highest dividend yielding stocks in the DJ-30 'Dow Dogs' (3.69%).

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

Week ending 11/15 INTC closed 24.52. Stocks rise until they meet resistance then reverse until they find support. 8/16 low 21.89 is now key algo (primary trend).

11/5 Most recent support at pivot point low 23.77.

Currently challenging pivot point 10/31 high 24.73.

Earnings: 5 yr avg EPS: 1.74. TTM EPS: 1.85. Current P/E: 13.25. Forward P/E: 12.90.

Est Avg Yr EPS: 1.89. Est Yr High EPS: 1.93. 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.

Warning: UnitedHealth Group (UNH).

Week ending 9/20 'Bearish Engulfing + 6' candlestick formation (weekly chart) indicates serious liquidation took place.

We now know 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). Look for up move seeking next pivot point high. Previous lower high: 10/16 (75.49). Key algo: 9/16 high (75.88) (daily chart).

UNH now above 50 SMA & 200 SMA (daily chart).

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

Earnings: 5 yr avg EPS: 4.41. TTM EPS: 5.29. Current P/E: 13.59. Forward P/E: 13.02.

Est Avg Yr EPS: 5.49. Est Yr High EPS: 5.60. Est Yr Low EPS: 5.43 (per analysts).

Next earnings date: 1/16.

Cisco Systems (CSCO).

CSCO is now back among the 'Dow Dogs' and 'Small Dogs'.

Week ending 11/15 CSCO closed 21.53 (Yield: 3.18%).

11/14 low 20.77 possible pivot point low. Possible resistance: 10/24 low 22.10.

Earnings: 5 yr avg EPS: 1.37. TTM EPS: 1.86. Current P/E: 11.58. Forward P/E: 10.71.

Est Avg Yr EPS: 1.99. Est Yr High EPS: 2.15. Est Yr Low EPS: 1.89 (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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