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The Inner Circle, Issue #604 - We Have The Votes!
December 04, 2017
We Have The Votes!
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 12/1 CSCO closed 37.60 +1.11 (Yield 3.11%) 8th 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 support algorithm to watch: 12/1 low 36.73 (lowest low - last 3 mo).
CSCO recent support algorithm to watch: 11/10 low 33.67 (lowest low - last 3 wks).
CSCO has found support at the 11/10 low 33.67 (IMO).
CSCO currently above both the 50 day sma and the 200 day sma on the daily chart (Favorable).
CSCO currently above both the 50 day sma and the 200 day sma on the weekly chart (Favorable).
CSCO currently above both the 50 day sma and the 200 day sma on the monthly chart (Favorable).
Current upside target on the weekly chart: 32.80 (* = change) Achieved 9/21.
Current upside target on the monthly chart: 35.84 (* = change) Achieved 11/16.
Symmetrical Triangle Info:
NOTE: IF the 11/29 high, 38.03, also turns out to be the pivot point high on the weekly chart, a reasonable (IMO) downside target would then be 36.20 (-3.72%) from here.
NOTE: IF the 11/29 high, 38.03, also turns out to be the pivot point high on the monthly chart, a reasonable (IMO) downside target would then be 33.79 (-10.13%) from here.
CONTACT ME, If you would like my thoughts on how best to play CSCO (or any other stock).
NOTE: The 29, 30, 32, & 34 areas appear to be important historical horizontal lines (IMO).
Earnings: 5 yr avg EPS: 1.84. (ttm) EPS: 1.92. Current P/E: 19.58. Forward P/E: 15.19.
Est Avg Yr EPS: 2.46. Est Yr High EPS: 2.50. Est Yr Low EPS: 2.41 (per analysts).
Next Qtr Est Avg EPS: 0.59. Est High EPS: 0.61. Est Low EPS: 0.58. Prior Qtr EPS: 0.48.
Next earnings date: 2/16/18.
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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