Should investors 'let it go'

CNBC's Fast Money
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Automatic TRANSCRIPT

Is the time for investors to let it go sure. So you know before the charts. It's really all about who you are in the market and what your timeframe as there have been plenty of where disney as gapped up like this today up thirteen percent. It's q one beat in two thousand nineteen was about twelve percent. Move on vaccine day november ninth. We know at jumped about twelve. But what we do know is after big jumps like that. It's pretty Sideways fallow on a week over week basis. But let's look at some charts. The first is the breakout. Conventional kind of thing everyone agrees is well recognized stock that moves above a well-defined range with a gap. And you can see it. There is the definition of a breakout. Now second chart look where the stock stopped. It stopped to the penny at the internal trendline in effect for the past year. And a half. I mean literally stopped on that line in fact it peaked. Essentially around eleven o'clock and it spent the rest of the day going sideways so it was aggressively rated but didn't really progress now to more charts. Where are we in relation to the hundred and fifty day moving average. You could use the two hundred and you could use the fifty but if you were to look at this chart disney is trading some thirty nine percent above its hundred and fifty day. Now take a look at the next chart. This is going back for the past ten plus years and you can see here again. The relationship of price with average price over one hundred and fifty days. So in the history of the stock going back to the nineteen seventies it is only traded farther above the hundred and fifty million one other time and in principle that gets the timeframes. Long-term this is hugely bullish tactically. I think you fade the move. You take profits all right. It's a carter says let it go. We'll see in a bit car options action. So you've got the fundamental story. You got the technical take from the chart master. How would you trade disney here. Brian kelly what do you say. So i with carter on this when i really like his take on this because if you think about it. This is a long term fundamental. Play here because not only are they going to have more movie streaming online. But we know about disney's that they have tremendous leverage in their platform right so they can go to the parks. The parks are going to reopen their cruise. Ships are going to reopen. They're going to be able to take what they do on disney plus and bring it to all of those places but that does take a bit of time. And you priced in this surprise here and so where it's trading now and remember. The stock was seventy eight and a half or so back in april march april so it has had a tremendous run this year. It is priced in an awful lot of good news and so for me. I think you get a better entry on this. It doesn't mean that. I don't like disney. In fact i think it's going to be one of the better ones coming out of the pandemic but i think you get a better entry. I would wait either for today's gap to be filled or for the low of today to serve as your support and then wait for that breakout so you like it long term. But do you think that there could be a pullback shorter-term james mcdonald. I think part of the betting here is that is that this is a premium product. That people will pay for it in fact they. They announce a price hike of a dollar in the united states. Twenty nine percent in europe and a bet on the management team a ceo. Bob shape may be new to the role. He's not new to disney and he's still got executive chairman. Bob iger around. I in terms of this execution which is a dramatic change in how the business the structure and how the business considers an executes content. Well bob eiger remembers the old days when you had a lot of customers and you had a big brand. You had a lot of action and there is a firm back then called. Aol that got everybody's attention stock ran up on potential and we saw where that happened and i love carter's technical analysis and always spot on with his fundamental outlook. But my grandma told me use common sense you know right now. The pe ratio is at eighty seven There's more forward-looking upside for this netflix. Which masters this game. Netflix's out similar subscriber growth from the boom from cohen. And look what happened. That sub growth then cooled off for the next three months in this covert level. Growth rate is not usable for the long term with disney. Netflix shows that more content equals more subscribers. And that's a good thing but we're shifting attention away from the other weaknesses with this company. This is not a tech company The media only makes up forty percent of the total revenue parkson products. Make up twenty three percent and they're gonna take massive hits here with the new lockdowns over the holiday seasons. Let's use commonsense international segments twenty three and a half percent of the total revenue. It's going to be suffering. There's no fed overseas to save them. So let's use our common sense and stay away from disney here up one hundred seventy five bucks. No way no way no way. We can't worry about the long term. We've got to survive this recession. That's coming not

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