Here’s your plan for dealing with Mickey. (December 05, 2016)
DIS
I want to look at Disney ( NYSE:DIS ) today; I haven’t looked at this in a while. This stock looks like it is about ready to push through $100.00. It did it a little bit today for a moment, and then slipped 4 pennies. If you look at the weekly chart you can see the uptrend is over. Now though, the stock has been drifting kind of sideways to down, I guess, for most of 2016, and that leads us back to the daily chart. There has been some chatter about whether Disney ( NYSE:DIS ) is going to spin off or get the heck rid of ESPN network, nobody seems to want to watch football anymore. Anyway, Disney ( NYSE:DIS ) looks like it is building a pretty decent setup here. We have got a pretty nice setup.
I like the fact that it is trading right below $100.00, because you like these even figures. Here is why: It is at 99.96, don’t buy it now. It is trading in this range. Wait until it breaks above this range. I would rather buy it at $100.04 or even $101.00 than 99.96. Because if I am buying it at 99.96 I am buying it in anticipation that the stock is going to do something that it hasn’t been able to do. If I wait $1.00 I am buying it after it has shown me that it is pretty much done with this trading range and it is moving on to the next one. So I am giving up $1.00 in return for a little more certainty. I will take that any day. Because then here is the other thing: If I am buying at $101.00, I can put my stop pretty tight, $99.00 maybe $98.00. But shoot, even $99.00, lets compromise and say 98.50, I have a really, really tight stop on it. And if I am wrong, if the stock ultimately falls back into congestion, well I don’t really want to be buying the stock anyway then, and so I am glad I got stopped out for a small loss. On the other hand, if the stock keeps going, I had the confidence to buy the stock because I had my risk contained.
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