Cisco (C)-King of all Techs.

Cisco (CSCO) is one of the most important companies in the market and the backbone of Technology. I've always been a John Chambers fan and believe that he runs one of the best companies in the World. He's always been honest with the shareholders and conservative in his conference calls. As usual they beat the anticipated numbers on the EPS and revenue fronts. The important factor is Chambers statement himself on the conference call.

Chambers said that during the quarter the company saw "dramatic across-the-board acceleration and sequential improvement in our business in almost all areas." They are adding 2-3,000 jobs so if you're a Tech. guy then send over that Resume.

Now I've been following CSCO  for about 20 years. Even during the boom, boom times of the Internet 90's he's never made such bold statements. He's a not cheerleader type of CEO and actually has always the opposite. So strong Revenue growth/Cash flow, number one in their business, looking for strategic acquisitions and one of the best managed companies in the world. That's what you get as a shareholder.

Would I run out and buy more tomorrow? No. If you want to trade it then I wait on the long side. Think about a short but be careful. We have that jobs report out on Friday. I can't for the life of me see how it can be good so we probably will see a major sell-off especially if those numbers are bad.

If you want a solid company as part of your long term portfolio then wait until the jobs report is out on Friday and then start your position. I say START because we always dollar cost average. Buy a little at a time and get a good cost average by buying more on down days.

Technical's:

In looking at the 6 month chart you can see that CSCO bounced right off $22.50 with a reversal pattern. Several Red candles and then a wick at the bottom and the reversal. Looks like Ford huh. See a pattern?
At $23.07 you can see that this was decision time. That's indicated by the Black open candle with a wick on top and the fact the it backed off last time at that level. However, if you look at the RSI (Relative Strength Index which measures momentum) you can see that that is a very nice low number at 43.08. With that in mind it's a better long at that level than a short.

http://stockcharts.com/h-sc/ui