Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways to Play: Speculation Is High in Cisco

By

Strengthen your portfolio in good times and bad.

PrintPRINT
Speculation Is High in Cisco

Shares of Cisco (CSCO) rose the most in five months to a new 52-week high yesterday after the company said it will unveil a product that will "forever change the Internet and its impact on consumers, businesses, and government."

In a story by Bloomberg, the network equipment maker hasn't yet released any details, but analysts are already speculating the company will unveil a router that's capable of transmitting Internet traffic at 120 gigabits per second, or more than two terabytes per device. That's the kind of speed that would appeal to phone carriers like Verizon (VZ), Sprint (S), and AT&T (T), as well as Internet service providers.

Call options traded 237,000 times ahead of the announcement, or 6.4 times the daily average during the past four weeks. The announcement is due out at 10 a.m.

From the Bull Pen: If you rode Cisco for the past few days, then congratulations. But be careful about starting fresh positions as there's a lot of speculative energy that could disappear in an instant. Instead, bulls can look to Verizon as the downtrend appears to be done. A sell stop can be set below yesterday's low (near $29).

From the Bear Cave: Tech bears may want to just keep an eye on the technology ETF (XLK). Keep an eye out for a lower low below $23.30. If confirmed, consider a downside position with a buy stop above that level.

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 -0.17%, India -0.29%, Hang Seng 0.05%, Shanghai 0.52%, and Taiwan 0.11%.

Across the pond, we see the FTSE -0.75%, DAX -0.63%, CAC -0.64%

As of 8:20 AM EST, S&P Futures are trading -03.25 to 1133.75. Nasdaq futures are -3.250 to 1884.75.

A Look at Commodities

Over in commodities, crude oil is -1.32 to 80.54 while gold is -7.700 to 1116.30 this morning. Silver is -0.252 to 17.025 and copper -0.0405 to 3.3710.

The dollar Index is +0.0350 to 80.7950.

No economic events scheduled for today but click here for the full trading radar.

Good luck!

Minyanville's stock portfolio, FlexFolio by Quint Tatro, is beating the S&P 500 by 26% since inception. With a 14 day FREE trial you'll get trade alerts, interactive strategy sessions and access to the full portfolio. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE