To be a successful trader over the years you need to see the markets “deep and wide”.

Price action trading gives you the depth of what’s happening on an underlying, and it helps you determine where supply and demand are nested, or firm support and resistance are set.

However, it’s always good to take a step back and look at the corporate information, and seasonality of your underlying for the wider view of how your underlying is interacting with global market seasons and trends.

Currently, the markets have been in a downtrend, and now post quadruple witching and before quarterly expirations, we’re seeing a bit of a relief rally. The question on every seasoned trader’s mind is, Where is this liquidity coming from? If we’re moving up are we being pushed and pulled based on options contracts, OR are we actually being moved by investors and institutions buying up shares?

The reality is volumes have been painfully low in all sectors (except energy, and commodities), but we are still melting up overall. But, what about stocks that tend to rally during this particular season, will they get their chance to run, will they see strong volume, or will the wider market sentiment cause Disney’s annual run-up to run dry faster?

According to Seasonax, for the next 5 weeks Disney (DIS) tends to perform very well, and according to the charts DIS has been in a downtrend for the last year going all the back to November 2020’s $13.00 gap up. However, with walkouts taking place at Disney’s Orlando complexes, and the heavy downtrend that Disney’s shares have been facing, can they bounce up?

Does Price Action, and negative news beat out the strength of annual trends?

We will have to wait and see how these walkouts are managed; and consider how the stock trades in the coming month and into the next earnings season.

What are your thoughts? Where is Disney headed? Is Disney a Buy, Wait or Sell?

Macro Micro Intersection: DISNEY

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