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Traders on Wall Street are feeling pretty good these days as they push the S&P 500 up to new all-time highs. The S&P 500 has pulled back slightly this morning, but there is still plenty of bullish action on the market.
The United States and China have agreed to reopen trade negotiations, the Federal Open Market Committee (FOMC) appears to be preparing for rate cuts and corporate America is looking good thanks to a strong and confident U.S. consumer base.
You can see this consumer confidence on display with the magic that The Walt Disney Company (NYSE:DIS) is creating.
DIS has been killing it this year with a strong offering of new movies, theme park attractions and plans for streaming media services that consumers are lining up to spend money on.
Let’s face it: We all want to be entertained, and we’re willing to pay good money for it.
DIS Provides Top Quality Entertainment
Captain Marvel, Avengers: Endgame, Aladdin and Toy Story 4 have been raking in money at the box office. Avengers: Endgame is doing particularly well as it closes in on Avatar‘s box office record. And DIS has major movies, like Spider-Man: Far From Home, to release in 2019.
Elsewhere, Star Wars: Galaxy’s Edge has attracted thousands and thousands of visitors to Disneyland, even though the company boosted park admission prices by more than 7% right before the new attraction opened. That only emphasizes what we said before: Consumers are willing to pay good money for entertainment.
With Disney+ launching soon and DIS buying a controlling stake in Hulu, the company is increasing market share and adding new product offerings. That’s always a good sign.
Climbing Toward New Highs
All of this has sent DIS soaring higher in 2019. We’ve already taken advantage of this bullish move once this year, and we’re looking to do it again now that the stock is breaking out of the bullish “wedge” continuation pattern it has been in since June 13.
Daily Chart of Walt Disney Company (DIS) — Chart Source: TradingView
We think DIS is ready to break up to new 52-week highs in the run up to the company’s next earnings announcement in early August.
After breaking higher at the beginning of June, the stock has established support just above the $138 level, giving us an excellent strike price for a put write.
To find out which DIS puts we’re selling — and to get access to our full portfolio of income-generating trades — consider signing up for risk-free trial subscription to Strategic Trader today.
InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of Strategic Trader.
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