“The worst is far from over, “ I noted on July 27, 2015.
The Dow had just broken previous support, we warned, and could send the Dow to 17,250 unless something big happens.
Since then, the Dow attempted to stage a move higher on nothing. But that has since failed as we now challenge double bottom support at 17,419.
If this support level fails to hold, the Dow could plunge to 17,250…
There’s nothing to get excited about in the market these days, unfortunately. But that doesn’t mean there aren’t ways to profit from it.
What I’d like to do here is recommend that continue holding the DIA November 177 put with solid gains, and consider buying to open the DIA November 2015 174 put up to $6.10.
At the same time, there are some ridiculously oversold stocks in the market, including Disney (DIS). It’s insanely oversold here.
The fear is priced into the DIS stock. It’s not going out of business. It hit a near-term snafu. It’ll bounce back just as it has every other time it sold off close to the 200-day moving average. Plus, RSI and MACD are on the floor, telling me a bounce – short-lived or not – is imminent.
I’m not really worried about the ESPN fears either.
One of the biggest reasons I’m excited about DIS growth, despite recent headwinds is Star Wars. The new movie – out later this year – could gross as much as $2.2 billion worldwide.
Consider buying the DIS stock up to $110 and / or the DIS January 2016 115 call option up to $4.15. Be patient with it.
We will talk again soon.
Oh, we’re also on Twitter now. Check out Trader Insight’s page @TraderInsight2.
Have a great weekend.
Ian L. Cooper
Forgotten Profits