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The Inner Circle, Issue #477 - Spare us from Obamacare
June 07, 2015
Spare us from Obamacare
FROM: Spare us from Obamacare. The Supreme Court should just finish it off.
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 6/5 CSCO closed 28.58 -2.49% (Yield: 2.94%) 14th highest yielding among the DJ-30.
CSCO is not currently among the 10 highest yielding DJ-30 'Dow Dogs'.
CSCO is not currently among the lowest priced/highest yielding DJ-30 'Dow Small Dogs'.
Key primary support algo to watch: 3/26 low 26.62 (lowest low - last 3 mo).
CSCO has broke support 6/4.
CSCO recent resistance algo to watch: 5/19 high 29.90 (highest high - last 3 wks).
CSCO currently below the 50 sma but above the 200 sma on the daily chart (Mixed).
CSCO currently above the 50 sma and above the 200 sma on the weekly chart (Favorable).
CSCO currently above the 50 sma but below the 200 sma on the monthly chart (Mixed).
Current downside target on the weekly chart: 26.21 (-8.29%) from here.
Current upside target on monthly chart: 31.75 (+11.09%) from here.
Symmetrical Triangle Info:
NOTE: IF the 6/5 low 28.49 also turns out to be the pivot point low on the weekly chart, a reasonable (IMO) upside target would then be 31.77 (+11.16%) from here.
NOTE: IF the 3/2 high 30.31 also turns out to be the pivot point high on the monthly chart, a reasonable (IMO) downside target would then be 24.04 (-15.89%) from here.
NOTE: The 26 area appears to be an important historical horizontal line.
Earnings: 5 yr avg EPS: 1.51. (ttm) EPS: 1.72. Current P/E: 16.62. Forward P/E: 13.14.
Est Avg Yr EPS: 2.18. Est Yr High EPS: 2.22. Est Yr Low EPS: 2.05 (per analysts).
Next Qtr Est Avg EPS: 0.56. Est High EPS: 0.58. Est Low EPS: 0.55. Prior Qtr EPS: 0.47.
Next earnings date: 8/12/15.
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 "combo's" (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 deeply involved 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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