Saturday, December 18, 2010

12-18 CSCO update

About 9 days ago I told you: "It appears we currently have 2 shorter cycles up for about 5-6 trading days.  It also appears very limited upside ($19.90-20.00).  I do not see a lot of upside or downside at this time - trade in a $19-20 range for now IMO."   This appears to have been the case,

So what is ahead for CSCO?  From a rational basis one might expect some tax selling of CSCO over the next few days into the end of the year.  But, what are the cycles saying?  The 22 day cycle topped on Thursday I believe.   The 34 day cycle topped  on Monday it appears.  The 45 day cycle was down  and should bottom near the end of December.  So this suggests we will get tax selling the next few days.

By the end of the year all 3 of the cycles should have bottomed.  So you may want to buy CSCO the last couple of days of 2010 or the first day of January.  The downside target for buying should be $19.00-19.10.  Keep in mind CSCO has indicated they will institute a dividend and that should provide some impetus to the upside in the new year (might break out and exceed the $19.90-20.00 resistance).

See for yourself:

GL and Happy Holidays traders.


  1. I wouldnt discount all the Fed pomo liquidity they've been pumping in either.


  2. c_k - Tell Sir Edmund the markets will discount this liquidity. The question is how soon. The discounting mechanism is called inflation.