CSCO Inching Higher

Lagging Nasdaq Prompts Profit-Taking

By Bryan Bottarelli
Tuesday, September 26, 2006 2:54 PM EST
Tue, 26 Sep 2006 19:54:00 GMT

Dear Bottarelli Research Member,

Perhaps I’m jumping the gun, but I think it’s time we take our profits off the table on our CSCO November 20 Calls (CYQ KD).

After entering these calls last week for $3.20, they just hit a high of $3.70 good for a respectable 15.63% gain. The reason I’m taking a cautionary stance here is because the NASDAQ is acting as a laggard behind the Dow and S&P 500. As I write, the S&P has hit a 5 ½ year high and the Dow is not far behind, but the NASDAQ is still well off its high water mark.

CSCO

Looking specifically at CSCO, their recent $275 million investment in Turkey could be a nice addition to their business model, but it doesn’t look to be the catalyst for any near-term gains. Chart-wise, I still love the up-trend but I fear it could be losing some momentum here. Let’s go ahead and use today’s upside push to lock in our profits on CSCO.

PLAY: Sell the CSCO November 20 Calls (CYQ KD) at or above $3.60, good for the day.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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