I'd be looking for a top on this move around 69-71. AMAT has been leading the NASDAQ for a few weeks now, so you can look to AMAT for a clue on the short-term top. If CSCO breaks below 48 before it hits 69, I was wrong, wrong, wrong. I don't think MSFT is a negative factor in the tech area, but if it recovers nicely in the next few weeks, it will boost the rest of the sector along with it.
Remember that the fund managers have to show their clients some numbers at the end of June. Watch for some volatility in the next two weeks. If things go north hard and fast, and you get your upside target on CSCO, lighten up and buy it back cheaper. Sell some covered calls if you want to. If you are long for the rest of the year and won't sell, see if the stock breaks below 50, and if it does, buy a few more shares in your long term account. If the stock fails to get back through 50 at that point, I'll come back here and tell everyone that this is still the best stock in the whole wide world.
If you are short CSCO right now, you'll have to consult my associate lawdog for his expert analysis on where to bail out. <G>
Best of luck and good trading to all of you CSCO longs.
Thanks,
eom |
