Burning Down the Bears’ Magic Kingdom

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Perhaps no other chart better represents what has happened in this market over the past few months. Disney, a mega-cap firm that had been essentially rendered dead money, is now making all-time highs in a breathtaking V-shaped move off last October’s lows. The presumption that the $43/$44 will provide some initial overhead supply may still be valid, but the sheer size of the rally off those multi-year lows last autumn is a microcosm for the nature of the broad market move.

Actually, I was far more constructive on Wal-Mart and Intel last October, when I profiled Disney finding initial support in this post. Either way, while Disney should pause here, the same can be said about many areas of the market. Indeed, momentum is a thing to behold, even in a stodgy mega-cap like Disney.

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