Another Dot-Bomb in Cisco Stock?
From the rollout of 5G networks to network security, Cisco has its hands in some of today’s and tomorrow’s growth markets, to be sure. And with the former, Cisco stock is enjoying one of Wall Street’s buzz words of the moment. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. As InvestorPlace’s Vince Martin recently noted, investors have priced in a very optimistic or aggressive outlook for Cisco shares. Off the price chart, long-term growth of around 10% and today’s comparatively rich multiple are warning signs Wall Street’s rose-colored glasses will come off. At a minimum, if you’re looking to play momentum in CSCO, a shorter technical pause of two to three weeks before entering a long position makes sense given the severity of the price run. And if you’re less hot on Cisco stock’s future prospects and see the rally built more on hype and hope than solid ground, shorting today’s topping pattern is definitely approachable. However, keeping a stop tethered to last week’s high, or better yet using a protective options position with earnings scheduled next week, is also 100% advisable.