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Two Ways to Play: Keep an Eye on Cisco


Strengthen your portfolio in good times and bad.

Keep an Eye on Cisco

RBC Capital Markets is out with a note on Cisco Systems (CSCO) ahead of its earnings release on Wednesday evening.

According to, RBC is pointing toward the improving trends in network spending by both enterprises and service providers. Network upgrades by both wireline and wireless customers could boost Cisco's near-term performance.

On the enterprise level, RBC believes companies are beginning to spend again though growth by customer base may still be volatile throughout the year.

RBC expects January quarter revenues to come in at about $9.45 billion, an increase of 5% (Wall Street consensus is at $9.39%). As for earnings, RBC sees Cisco reporting $0.01 better than consensus estimates of $0.35 a share.

From the Bull Pen: Short-term traders should always stay out of the way of binary events such as earnings. But investors should keep an eye on this stock and its earnings release as it could have important themes for 2010. Looking elsewhere in tech, consider VMWare (VMW), which could be finding support near its 20-DMA ($45.22). A sell stop can be set below that level.

From the Bear Cave: After the earnings announcement, watch if Cisco can trade above $23.20 resistance. If not, the bear claws could potentially grip tighter. If and when.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei 0.07%, India -0.01%, Hang Seng 0.61%, Shanghai -1.60%, and Taiwan -1.52%.

Across the pond, we see the FTSE 0.06%, CAC -0.27%, DAX -0.05%

As of 8:30 AM EST, S&P Futures are trading +6.60 to 1077.00. Nasdaq futures are +5.75 to 1745.00.

A Look at Commodities

Over in commodities, crude oil is +0.70 to 73.59 while gold is +5.300 to 1089.10 this morning. Silver is +0.150 to 16.340 and copper +0.0070 to 3.0590.

The dollar Index is -0.1750 to 79.4700.

On the Radar


08:30 Personal Income 0.3% cons.
08:30 Personal Spending 0.2% cons.
10:00 Construction Spending -0.3% cons.
10:00 ISM Index 56.7 cons.

Click here for the full trading radar.

Welcome back! Good luck and have a great day!
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No positions in stocks mentioned.

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