In the May 7th post, a Sell Short signal on Cisco Systems Inc. was triggered at $19.12; the stock is currently down to $17.17 (opening price) equivalent to 11.35% gain.
As you can see from the following article, there is a clear gap between fundamental analysis and market reaction which is mainly based on actual facts and events. That gap is filled by technical analysis which helps investors be more proactive and take appropriate actions based on information coming directly from the stock behaviour within the market.
Cisco shares dive on earnings outlook
Darcy Keith
Globe and Mail Blog
Posted on
Despite posting quarterly earnings that slightly exceeded expectations, Cisco Systems Inc. (CSCO-Q18.78----%) got pummelled in post market trading as the company released disappointing guidance for its fourth quarter. Cisco now sees adjusted earnings per share of 44 cents to 46 cents, versus estimates of 49 cents. Even worse, it forecast revenue growth of 2.5 per cent, far short of the 7 per cent expected by analysts. Shares were last down 8 per cent in extended trading, likely pointing to a day deep in the red on Thursday.
2 comments:
Hi TechTrader,
Am I wrong in thinking that it would be a great opportunity to buy Cisco Systems Inc. shares? Over time, they have proven to be a solid and stable company.
Great Blog!
Thanks Nic,
Yes I agree, Cisco is a solid company and the stock will probably turnaround in the $15s area.
However technical trading is like surfing, you have to adjust your board to the current and imminent waves so for now CISCO remains a Sell Short.
I try to focus on buying or shorting when stocks actually start a trend and whenever the trend is reversed exit as soon as possible to reduce my losses or protect my gains.
The main goal is to maximize the winning trades’ ratio.
TechTrader
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