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Oct 22

Entering Long CME Group ($CME), Disney ($DIS)

In addition to the $NFLX exit signal, we had new entry signals tonight in $CME and $DIS, which had appeared in our Stocks To Watch post over the weekend. We’ll execute them both at Wednesday’s open.

CME Group ($CME)

$CME has traced out a fairly shallow correction since the June/July highs and posted a new high close today. Although it was only a marginal break, I’m satisfied this has all the hallmarks of a longer-term trend resumption, as it’s clear there’s been an increase in volume on the upside with 6 accumulation days in the last 13. The swing low 10/9 close of $72.04 can act as a nearby closing stop, and gives us a good risk/reward entry here.

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Walt Disney ($DIS)

This is a simple breakout pattern with $DIS gapping above its previous highs from May this year and accelerating away today. The 10/9 close of $63.59 can act as our initial stop. That level is just below the 20 and 50-day MA’s, with the 200-day in hot pursuit, so it would require a decisive breakout failure to see it return there. On any follow through higher and subsequent consolidation we should be able to move our stop up to the $66 area.

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