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Walt Disney Co. (DIS): When the Market Tries Your Patience

When prices go flat, recognizing this Elliott wave pattern can help save your sanity

by Nico Isaac
Updated: January 05, 2018

On December 26, reality TV megastar Kim Kardashian posted an unusual picture to her Instagram account. Instead of the typical, scantily-clad selfie, Kardashian's 100-plus million Instagram followers saw a photo of a... stock certificate for Walt Disney Company?!

The piece of paper, embossed with Disney characters from Winnie the Pooh to Dumbo the Elephant read: "This certifies that Kim Kardashian West has received a gift from her husband [rap mogul Kanye West]... of 920 shares worth approximately $100,000."

Talk about the "happiest place on earth."

But very few of us in the "real-real" world are gifted six-figure "stock"ing stuffers to one of the world's largest and most venerated companies. Most investors and traders would be delighted by the "gift" of staying on the right side of a market's price action. Period.

Markets spend less time in smooth, enduring up and downtrends than they do in complex, volatile, persisting sideways trading ranges that try your patience and prompt a premature rush for the exit... just when the trend is set to turn.

Some traders consider that kind of crawling, coiling price movement a lost cause. Our senior market analyst and Trader's Classroom instructor Jeffrey Kennedy considers it a time for opportunity -- because it indicates that a high-confidence Elliott wave pattern may be underway: a triangle.

Triangles are usually sideways moves labeled A-B-C-D-E and characterized by these telltale traits:

  • Each wave must subdivide into a 3-wave move
  • A triangle usually occurs in the wave 4 position Triangles always precede the final move of the larger wave sequence and therefore act as "warning signs" that the bullish party/bearish vigil is almost over
  • Triangles are usually followed by a strong "thrust" in the direction of the previous trend, to complete the larger pattern

There are many types of triangles, the most common being the contracting variety pictured below.

Contracting

So, now that we know what a triangle is, let's go back to talking about Walt Disney Co. In the September 19 Trader's Classroom episode, editor Jeffrey Kennedy showed a chart of DIS that indicated prices were potentially unfolding in wave C of a multi-year long triangle.

Go ahead and listen to Jeffrey walk subscribers through his triangle interpretation via this clip from the September 19 Trader's Classroom. Simply press play and follow along.

 

The chart below moves forward in time and shows how DIS followed the path outlined by Jeffrey:

  • First, prices moved moderately lower in non-dramatic fashion
  • Followed by a rally in wave D

Disney Chart

On January 3, I reached out to Jeffrey and asked him whether price action in DIS continued to support his analysis from last fall. His reply:

"Yes I still like the triangle interpretation :). "

In the September 19, 2017 Trader's Classroom episode, Jeffrey explains how anyone can use the A-C, B-D trend lines of a triangle to project where a significant turn in price may occur and also to calculate a potential thrust measurement for the final move of the larger pattern.

The enduring value of Elliott wave analysis is clear, from this real-world example -- and from every Trader's Classroom lesson Jeffrey cultivates for his subscribers. They come to you 3-5 times a week, and include instant access to the last THREE months of archived Trader’s Classroom lessons.

Become THAT trader who can see high-confidence entries, get in and get out with confidence — and sleep at night.

Picture this...

Several times a week, you meet with a market veteran and he's one of the most sought-after teachers in the world. He has dedicated his entire professional career to helping traders like you spot and act on high-confidence trade setups.

At every meeting, you watch over his shoulder as he shows you exactly how to spot your market opportunity. And he doesn't just teach principles. He uses real-life market opportunities to show you the telltale signs that a market is about to move. He also coaches you on how to create your trading plan for this setup — including how to estimate upside potential and identify risk-limiting price levels.

Sound like an ideal fantasy? Well...

THAT is exactly what Jeffrey Kennedy is offering you as a Trader's Classroom subscriber!


Here's How Trader's Classroom Helps You Trade With Confidence:

3 times a week, Jeffrey uploads an exclusive 10-15 minute video for you to the Trader's Classroom subscriber area. While each lesson is not a big time commitment, it's packed with trading insights that you can instantly apply to any market. And any time frame. And you can watch and re-watch the lesson as many times as you like.

Today's lesson might be a valuable insight into a historic market setup in Gold... Tomorrow it might be an immediate trade setup in Google. In the past month alone, Jeffrey has taught valuable trading lessons using NKE, AAPL, BAC, JNJ, JPM, FB, QQQ and many more... Whatever it is, each Trader's Classroom lesson delivers lasting insights that compound to change the way you trade forever.

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You Get: Ongoing Real-Time Mentoring

Three months of Jeffrey Kennedy's Trader’s Classroom

Over the next three months, Jeffrey Kennedy is your opportunity-seeking Sherpa. He will show you opportunities and dangers in the markets. In fact, as soon as you order, you get instant access to the last three months of lessons! Some of the opportunities highlighted in these lessons are still unfolding.

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Together, these 2 books and 2 online courses combine to offer the best foundation and reference guides for Elliott wave traders.


 

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To start, you get Elliott Wave Principle - Key to Market Behavior (a $29 value). This definitive guide to Elliott wave analysis will be your roadmap and reference guide from here on.

 

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Next, the Visual Guide to Elliott Wave Trading (a $60 value) gives essential insights on how to incorporate Elliott wave analysis into your trading style.

 

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Then, put down the books and head to a screen, for two online courses. In The Wave Principle Applied Online Course (a $99 value), Jeffrey Kennedy shows you how to spot an actionable pattern and formulate a trading strategy.

 

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