💼 Inside the Portfolio: Updates from our Swing Trading Desk

19 Nov 2024 - Insights, adjustments, and forecasts about our latest swing trades 💹

Position Updates:

DIS is flirting with our stop. We want to give a little bit more room until 110.50; the 111 level seems to hold.

New Positions and Subscriber Insights:

Given the current market volatility, we have added a new position that aligns with our risk management strategy for the week. Another one is currently on watch; we’ll see.

1. Walt Disney Co (DIS)

The Walt Disney Co. engages in international family entertainment and media enterprise business. It owns and operates television and radio production, distribution and broadcasting stations, direct-to-consumer services, amusement parks, and hotels. It operates through the following business segments: Disney Entertainment, ESPN, Disney Parks, Experiences, and Products. The company was founded by Walter Elias Disney on October 16, 1923, and is headquartered in Burbank, CA.

Fundamental Analysis

• Financial Health: Finally they made it, with good earnings. Disney achieved $7.5 billion in cost reductions, surpassing its original target, and saw Disney+ core subscriber growth of 7 million. The Parks, Experiences & Products segment performed strongly, and there was a significant improvement in streaming operating losses, contributing to robust free cash flow generation. Regarding growth metrics, Disney's EPS turned positive year-over-year, improving from -$0.30 to $0.14, although quarter-over-quarter growth declined by 67%. Key drivers included cost reduction initiatives and improved streaming economics.

• Growth Prospects:

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Technical Analysis

• Entry Point: We entered when the stock broke to the upside 111 level with volume and a very high RS relative to the Market.

• Support and Resistance Levels: Support is now 111.00, and the first resistance is 115.00, which is yesterday’s high.

• Additional Notes: Earnings Play and the stock is defensive, so it was a good play during this market correction.

Entry Day: 15 November

Price: $111.26