CSCO, VLO, BIDU and FB update

VLO ran up into the range I mentioned topping recently around 53.7 and dropping back down in what looks like a 5 wave.  This brings into question whether it will stay below 55, so this downside play is on hold until a proper turn in momentum is seen.

Cisco did come down to 22.5 and is looking solid. It may be entering a 3rd of a 3rd elliott wave which would mean rapid movement up to 27 and eventually 30.  There is still a low chance of a quick drop down to 22 but that would be a tremendous buying opportunity if it was rapid because that level has significant support. 

BIDU and Facebook still have some downward momentum but look to be joining in the coming rally with short term targets of 165-170 and 64-66 respectively.

I am not a professional trade at your own risk.

Cisco looking strong in face of weak overall market. VLO setting up for fall. CGI was a big winner.

Cisco has upward trends on daily and weekly charts as well as a series of bullish impulse waves since mid 2011.  While the Nasdaq has shaved off 8% in the last month, CSCO is up around 8%.  Look for pull back to $22-22.50 to buy.  Target is 28-30 over the next few months for around a 25% gain. stop at $21.

On the daily and weekly charts, momentum for VLO is sharply down.  In addition, there are significant divergences on indicators.  The chart below shows a classic and pretty impulse wave down.  I'll be watching for a retrace up to at least 52.5 and possibly up to 54 but then it should turn and go south with a first target of 48 and second of 42 ish.  If we can pick up May 55 puts for 2.50, we should be able to get a triple by selling them for 7.50 in a month or less.  I'll be watching for the turn signal on this retrace.

Updates from the last post...

- RIG broke down through 20 years of trendline support so that trade is over.  If you bought at 47-49 and got stopped out at 42 then that was about a 12% loss.

- IBM made it to 190 as I suggested but is having trouble with 195.  No recommendations now.

- CVX did not make it to 130 so we got stopped out at 120 for a 4% loss.

- Citigroup and BMY both promptly made it to 55 as predicted for 6-8% gains.

- CGI made it up to 24 for a 23% gain.

- And my big love YRCW is still looking good as a long term buy.  After my last post it dropped to my buy range of 12-15.5 and then promptly took off for 27.  Now at 20ish it is still a buy and may drop down to 17.5  for the opportunity to pick up some more.  

I am not a professional. Trade at your own risk.