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The Inner Circle, Issue #475 - Stop blaming George Bush
May 24, 2015
Stop blaming George Bush
FROM: Stop blaming George Bush. Obama’s failures have created chaos in Iraq.
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 5/22 CSCO closed 29.26 -0.98% (Yield: 2.85%) 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: 2/2 low 25.92 (lowest low - last 3 mo).
CSCO recent support algo to watch: 5/6 low 28.69 (lowest low - last 3 wks).
CSCO has found support at 4/6 low 26.84 on the daily charts (IMO).
CSCO currently above the 50 sma and above the 200 sma on the daily chart (Favorable).
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 upside target on the weekly chart: 31.01 (+5.98%).
Current upside target on monthly chart: 31.75 (+8.51%).
Symmetrical Triangle Info:
NOTE: IF the 5/19 high 29.90 also turns out to be the pivot point high on the weekly chart, a reasonable (IMO) downside target would then be 26.21 (-10.42%).
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 (-17.84%). 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: 17.01. Forward P/E: 13.50.
Est Avg Yr EPS: 2.18. Est Yr High EPS: 2.22. Est Yr Low EPS: 2.16 (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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