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.
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