Disney stock has done incredibly well for my portfolio but since moving above the $110 level I have indicated several times that the stock is overvalued and ready to fall back. The present decline sparked by the revenue disappointment was made worse by the stock being overvalued. Yesterday’s decline weighed heavily on investors and the market in general. Today the stock continues the decline.
Disney Stock – 214% Increase In Value
Disney has been one of the best stocks in my portfolio over the past 5 years for capital gains. The stock even today is up 214% in value since August of 2010. The steady rise in the stock is what we as investors are looking for but eventually all uptrends end and a new trend begins. Disney is now entering a new period which for the present time will see the stock try to establish a new base of support and new trading pattern.
Disney Stock 5 Year Returns
Disney Stock – Catch A Falling Knife
Looking at the above chart you can see that the term “Catching A Falling Knife” certainly applies to Disney Stock. The past two days of declines has seen heavy selling. Volumes this high have not been seen since August 2011. Entering trades in this kind of environment can be very risky and are always highly speculative especially after such a strong run-up in the stock.
My trade today in Disney Stock takes into account the likelihood of a change in trend, even a temporary one. The rest of this trade alert and strategy discussion is for FullyInformed USA Members. Disney trades on New York under the symbol DIS
Disney Stock – Trade Alert and Strategy Discussion for Aug 6 2015
This is the latest trade in Disney Stock. FullyInformed USA Members can access this article directly through this link or sign in to the full USA members site here. Non-members can join here or read about the benefits of a membership.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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