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The Inner Circle, Issue #392 - What's Really at Stake?
October 13, 2013
Hi <>,

What's Really at Stake?

Argument for Intel (INTC):

Anytime a quality company becomes available at depressed prices, (IMO) it should be bought.

Yes, MarketClub's Trade Triangle Technology algorithms rank its primary trend 'down'.

INTC is the 3rd highest dividend yielding stock in the DJ-30 'Dow Dogs' (3.90%).

INTC is also the lowest priced stock among the 'Dow Small Dogs'.

Week ending 10/11 INTC has successfully tested support at the 200 SMA whom the technical analysts reverently refer to as God and closed above the 50 SMA (Buy/Sell Line) (daily chart).

Earnings: 5 yr avg EPS: 1.70. TTM EPS: 1.85. Current P/E: 12.57. Forward P/E: 12.37.

Est Avg Yr EPS: 1.87. Est Yr High EPS: 2.12. Est Yr Low EPS: 1.70.

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.

Serious distribution could be taking place currently.

Yes, the stock is above the 'stack' (50SMA & 200SMA) but that could change quickly.

Yes, MarketClub's monthly 'Trade Triangles' are still ranking UNH in primary up trend... but:

If the 9/20 low (70.40) is taken out, computer screens will 'light up' all over the world (if they haven't already).

Forewarned is forearmed.

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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