CSCO - Cisco Systems Inc

I was thinking of getting back into this one a few months ago (owned some shares way, way back during the boom). However, I was preoccupied with other things and I never put an order in. Looks like I missed out.

CSCO looks like a great short very soon.

At key resistance now.



I'm waiting till Monday to see how it plays out.

If it goes up substantially tomorrow, might be on a breakout.

But any pullback and I have confirmation.

Buy some puts.

Updating intraday chart:



Could not hold $22. Profit taking EOD too. MACD bear crossover.

It does look like a pretty good short. Look at the falling volume on the weekly chart.

Close over $22. That's really above resistance.

I'm waiting for a confirmation--probably a definitive break of $21.00--to buy Oct in the money puts.

INTC plans to do layoffs.

Will probably lift QQQQ as well as CSCO.

Intel Corp. to cut 10,500 jobs -- 10 percent of work force - in restructuring

By AP Worldstream
Last Update: 9/5/2006 4:58:00 PM
Data provided by

SAN JOSE, California, Sep 05, 2006 (AP Worldstream via COMTEX) -- Chip-maker Intel Corp. said Tuesday it will eliminate 10,500 jobs - about 10 percent of its work force - through layoffs, attrition and the sale of underperforming business groups as part of a massive restructuring.

The Santa Clara-based company said most of the job cuts this year will come from its management, marketing and information technology ranks, and will expand next year to include manufacturing, design and other segments.

The cuts are expected to save the company $3 billion (?2.34 billion) per year by 2008. Severance costs are expected to total $200 million (?156 million).

"These actions, while difficult, are essential to Intel becoming a more agile and efficient company, not just for this year or the next, but for years to come," Chief Executive Paul Otellini said in a statement.

The world's largest chip maker is fighting to reverse sinking profits and regain market share stolen by smaller rival Advanced Micro Devices Inc.

Intel has been under intense pressure to unload money-losing divisions and halt the encroachment of AMD on its lucrative core business making the microprocessors that act as the brains of computers.

Intel has been steadily losing profits and market share. Analysts have criticized it for reacting too slowly after AMD's 2003 launch of the critically acclaimed Opteron and Athlon 64 chips for servers and desktop PCs.

Before the announcement, shares of Intel rose 11 cents to close at $19.99 Tuesday on the Nasdaq Stock Market. In after-hours trading, shares fell 16 cents to $19.83.

Speculation about massive job cuts has been rampant since Otellini announced in April the company was planning a broad overhaul targeting money-losing business groups in every aspect of its operations.

Intel, which had about 103,000 employees worldwide at the time, vowed to cut $1 billion (?0.78 billion) in spending. It also launched the review of its business units.

Otellini said the restructuring will be as expansive as the company's transformation in the mid-1980s, when it exited a business it helped create - making dynamic random access memory chips widely used to store information in computers - to focus on microprocessors.

That shift prompted one of Intel's largest rounds of layoffs ever, with the company eliminating more than 7,000 jobs, about 30 percent of its work force at the time.

Since then, Intel has avoided large-scale layoffs. But the dot-com crash did prompt the elimination of about 11,000 jobs - largely through attrition and buyouts - in less than two years. Head count was reduced to about 79,000 in 2002.
\


EDIT:

INTC down a / h? Odd. This kind of layoff news usually helps stocks.

Show me a 21.5 break and I think I'll go short.

CSCO was my short pick for the Sept. Contest; had a great run up bouyed by some well timed news/market movement, but just don't think it has any more legs.

Action needed, shorted @ 22.06

Short, or not to Short...

that is the question...

Closed under $22.00 still.

Resistance.

But I dunno; I only shorted this in my papaer accounts.

Wait till the picture gets a little clearer.

One ugly candle if she closes like this today

3-year chart shows Aug-September as beginning of ascend in time for Christmas selling season

Short term bearish due to recent double top in RSI; danger zone if 50 ma does not hold

http://bigcharts.marketwatch.com/cha...389&mocktick=1

Cramer was really on the ball when he called the buy on this.

Great run.

Going to $25?

hmmmmmm.......

looking for a breakout on pre-earnings buying. If earnings are good wed we should see a nice rally

well earnings did great, next leg up shall continue tomorrow. look at that breakout with 3 consecutive days of strong volume, tomorrow should continue it

go CSCO, up 10%......tech is backkkkkk

I think you can ride the CSCO train up, plan you buys on any dips, and you could see some pretty solid gains with low risk. Earnings like this make fund managers very confident about the company and it will perform very well in the coming weeks. You missed the initial jump, but there is a ways to go...