Is Disney's Rollercoaster Ride Coming to an End?
Disney shareholders have been on a rollercoaster ride since 2015 watching their investment go from $115 to below $100 on six separate occasions. The most recent ride saw DIS go from $150 to below $80 but here we are again back above $150. Is Disney going to breakout or break back down?
Not Your Father's Disney
Disney isn't just theme parks, cartoons and toys. It's now a streaming media company that's just getting started.
COVID-19 has no doubt hurt revenues due to a massive reduction of traffic to it's theme parks and in some cases closed them down entirely, but investor don't seem to mind. This lost traffic will no doubt come back in droves once the pandemic starts to fade.
Besides that, the future of Disney is on your living room TV. With two young kids in my house, it's now on mine.
I could go on about the future prospects of Disney and confirm any positive bias I have by looking up and reading stories online that make a bullish case for the stock. But I'm always skeptical of stock related stories and it doesn't matter how good they sound. What I trust is the price action. It speaks loud and clear and doesn't care what you think.
I love looking for and trading breakouts and right now Disney looks primed to make a move off of the rollercoaster and on to a rocket ship. However, there can be a lot of volatility around old highs and false breakouts are always something to keep in mind.
In my experience breakouts from multi-year bases in quality companies with proven business models, have a higher degree of success. Especially a company like Disney that is now perceived differently by investors and analysts after seeing the early success of Disney+.
Crypto Craziness is Back
The last two months we've seen the price of Bitcoin double and a bunch of my old trading vehicles (crypto/blockchain stocks) rise from the dead. I traded many of these names back in 2017 and we've been successfully trading them again in Profit From Trends Premium over the last couple months.
My cryptocurrency "proxy" list continues to grow and some of the names could just be getting started. For me these companies are not "investable" due to the wild swings in the price of cryptocurrencies. However, they make for great trading vehicles as long as you understand and manage risk.
Back in October I wrote about how I traded the crypto bull run back in 2017. It's a good reminder of how wild this market can get - Do You Remember The Crypto Bubble in 2017?
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