We’re back to Disney (DIS). Still working…and not overbought. (December 08, 2016)
DIS JBHT DIS
Today I am going to come back to Disney ( NYSE:DIS ). Yesterday we looked at some of the auto parts companies, but before that I was looking at Disney ( NYSE:DIS ), so I wanted to come back to this because it is working and it is working really well. This is working in a different way than some of the other stocks that I have been covering, J B Hunt ( NASDAQ:JBHT ) just comes to mind, a rocket ship from 84.00 to $100.00. Disney ( NYSE:DIS ) not so much. The reason that I am pointing out the difference is, on stocks that look like J B Hunt ( NASDAQ:JBHT ) that have gone just about parabolic, they can reverse on you pretty hard when they do. A stock like Disney ( NYSE:DIS ), which has had kind of like an orderly decline, a squeeze here at the bottom, a breakout, a test of the 200-day moving average, which we like to see as long as the test is passed, and then a move higher.
This stock has had some stops and starts, which means there is not a lot of profit taking built into here. Not a lot of folks have bought this stock at $60.00., now it is up at 100.00 and they can’t wait to get out. Lets zoom in here a little more, this is stock that has attracted buyers here on this high volume right up here, $98.00ish, something like that. So between where this big buying activity was, above the 200-day moving average, and where it is right now is not that much difference. So it is not like you are going to look at this and say, “Oh my gosh, when are they going to take profits? I am afraid of being in right at the top.” I just don’t see that happening. You can look here on the weekly chart and see this is kind of an orderly decline. Now I think we are getting an orderly advance.
If they do wind up flipping ESPN to some sad sack who decides to buy it, that would be a good thing for Disney’s ( NYSE:DIS ) balance sheet, because they will stop hemorrhaging so much, so they can sell all of that QuickKlot they have in the first aid kit. This is now moving up. I think it is fine to be long Disney ( NYSE:DIS ). We are up 4 days in a row, tomorrow, Friday, the last day of the week, it is hard to envision this stock just continuing to move without some type of a pullback or at least a little pause. I can’t predict that short-term stuff but I will just say this, any little pullback, any little pause in this big move, I think is an opportunity for you to be long Mickey Mouse, Donald Duck too.
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