Walt Disney Co (NYSE: DIS) Selloff Expected Says Market Timer Frank Kollar

February 4, 2009 (FinancialWire) (By Frank Kollar)

Shares of Walt Disney Co (NYSE: DIS) declined over 8% after the company missed on its latest earnings report. The Burbank, Calif.-based company earned $845 million, or 45 cents a share, compared with $1.25 billion, or 63 cents a share, in the same quarter a year earlier. Analysts expected a profit of 52 cents a share on revenue of $10.1 billion.

Traders have been selling this stock for the last two months, so the report should have come as no surprise.

Disney has had a series of lower highs and lower lows on its daily chart since early December, the signature of a stock that is being steadily sold off.

Disney is now testing its bear market lows of $18.73, reached in November. If it holds, expect at least a short term rally. If it breaks, Disney has plenty of room to fall before strong support is reached.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

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