Friday 12 April 2019

The Rise of Disney

US equity indexes ended the week on a broadly positive note, sp +19pts (0.7%) at 2907. Dow +1.0%. Nasdaq comp' +0.5%. The two leaders - Trans/R2K, settled +1.2% and +0.4% respectively.




It was a very bullish end to the week, with five of the six (R2K was the exception) main indexes breaking new multi-month highs. Volatility was very subdued, with the VIX melting to 11.95, and settling -7.8% to 12.01.

The Rise of Disney

Today's breakout in Disney (DIS) is a massively bullish sign for the broader market.

DIS, monthly, 10yr

After almost four years of broad chop, we have a decisive breakout in what is an important Dow component. Natural target is psy'150. If correct, its difficult not to see the rest of the market at least somewhat higher into and across the summer.

They are bringing back Palpatine one final time. Episode IX is set to wrap up the 'Skywalker Saga', and it appears that after Ep'9 in Dec'2019, Disney will leave the Saga alone for 3 or 4 years. However, they'll very likely still be producing tier'2 movies every 1-2 years. An Obi-wan Kenobi standalone is probable, which the fan-base are very much demanding.

Ascending into the weekend

A less wild ride than being long LYFT
Extra charts in AH (usually around 7pm EDT) @

Goodnight from London
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