Here’s a picture that would make any self-respecting Southern trader almost choke on his Coke and pork rinds (and I oughta know):
I suppose if the Nasdaq had closed up 100 points today, the airheads on TV would be falling over themselves to attribute it to the “news” about Cisco. That’s what today’s journalists do, you know. They ascribe reasons after the fact. Since the Nasdaq closed “down 1 point” today, they have pronounced investors “concerned with oil prices.” Duh… do ya think??
Even the illustrious James J. Cramer didn’t mention CSCO on his show today. Seems he only had room to pump his stocks du jour, a schtick that’s wearing thin about as fast as his book (THE BOOK! HOLY COW!) is sliding down the bestseller list. But remember, he just wants to educate you.
Don’t let all that fool you. A 120 billion dollar company having its largest percentage move up in oh, about 4 years and on volume of over 200 million shares is big, big news. You should dedicate some of your attention specifically to the Cisco chart the next few days, then keep it in the corner of your eye over the next few weeks.
Watch how CSCO handles this move. When Google was added to the NDX, I spoke of its potential effect on the index. Cisco is an 800lb gorilla as well. If it can sustain a climb from here, that will portend well for NDX, and in turn the entire market.
If today was a blowoff, with the institutional operators passing a couple hundred million hot potatos to “investors,” the price will fall away from $20 as those “investors” find themselves under water, and we’ll all have to listen to how they’re “in it for the long term.”