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PreMarket Prep Recap: What A Move In Disney, Analyst Thinks Apple Has Topped Out

Joel Elconin

When a big stock makes a big move, it's going to get a lot of coverage on the PreMarket Prep Show. Listeners were not disappointed when the move in Disney Co. (NYSE: DIS) was covered during the first 15 minutes of the broadcast.

Investors Like A Story And Disney Is Full Of Them

Whether or not how many of the initial 10 million sign-ups for Disney+ are going to actually enroll isn't the question. The fact remains there's a strong story behind the rollout of the streaming service and there's no way to tell when or how the story will end.

To the PreMarket Prep crew, the next chapter in the story will be how the issue handles the $150 level. It came as no surprise that the wicked rally in the issue ended on Wednesday just shy of that level at $149.92 as traders jumped in front of institutional size for a long exit or a potential short.

One of those traders was co-host Dennis Dick, who waited for the actual $150 price in heavy after-hours trading for his entry. After watching it race to $150.50, he was happy for a scratch when it came back down. Although it did go down afterwards, he didn't lament as he has made his living taking small losses on thousands of trades.

Interestingly, the after-hours high in the issue ($150.46) was matched in today's session when it peaked at $150.63 and backed off under $150. Clearly, there's another seller lurking that area that may be signaling a short-term top.

Pot Is Super Cold

After extended declines in the marijuana sector, this was an important week as three of more widely followed ones reported earnings.

If one was to follow the lead of the Cronos Group and Tilray, they would have been short Canopy Growth (NYSE: CGC) into the print and would be handsomely rewarded in today's session.

Despite exceeding sales from last quarter and a strong increase in sales, the report didn't alter the mood of investors towards the stock. The much lower open has turned out to be just off the high for session and exceeded its February 2019 ($16.74), which was identified as a potential support level.

What To Make Of Maxim's Apple Downgrade

The co-hosts of the show always respect a bold move by analyst in an issue. Instead of chasing prices higher or lower after significant price moves in either way with price target hikes or reductions, we applaud the ones brave enough to try and pick a top or bottom.

Before the open, Maxim Group downgraded Apple Inc. (NASDAQ: AAPL) to Sell with a price target of $190. The author of this article couldn't find any technical reason for the downgrade and noted support at the pair of lows at $261 area from Tuesday and Wednesday as an important support area.

The only resistance was its all-time high from Wednesday at $264.78. After a lower open, it surpassed that high by a dime, but reversed course and traded lower for the session, but has yet to reach the $261 support level.

Marc Chaikin Joins The Broadcast

About 20 minutes into the show, Marc Chaikin, founder of Chaikin Analytics was interviewed. He noted the potential weakness in the REIT and utility sector and discussed others that he was tracking in is Money Flow Indicator.

On Friday's show, Christoina Fromhertz of the Tribeca Trading Group will join the crew to discuss the overall market and individual issues on his buy and sell radar.


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