Right now all of my work in Cisco (CSCO) argues very strongly that the April 19 low at 16.52 ended its bear market phase from its April 30 high at 27.74. If accurate, this means that the strength off of 16.52 either represents the start of a powerful counter-trend recovery rally (that projects to 18.20/50 next) or the start of a new bull phase that should propel CSCO well beyond 18.20/50.

As of this moment, I need more technical information and price action to determine which of the above-mentioned scenarios is in progress, but we remain long in our model portfolio in either case.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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