High School Economics

This is some recession we are in! Walt Disney reported numbers this afternoon and hammered analysts estimates. On the heels of the Hannah Montana printing press and the huge success of High School Musical, combined with better than expected theme park and media revenues, Disney (DIS:NYSE) looks about ready to break out of a two year base and head significantly higher.

Disney is nothing short of a top notch operation and as a shareholder, they have always impressed on my many visits to Disney World. And, Selena Gomez is set to emerge!


The housing market is a disaster, and credit issues are increasing to couple with gas and commodity prices which are strangleholding consumers. However, with companies like Disney and Wal-Mart (WMT:NYSE) posting new highs, the country simply cannot be in the worst recession in moons at this time.

As the tape dictates, and tomorrow is another day, most all my checks point to strong companies heading higher going forward. A check of a chart of Home Depot (HD:NYSE) indicates a potential breakout as well, and that may say something to corroborate the opinion editorial in the Wall Street Journal today suggesting the housing crisis is over. In doing chart scans, I see many potential moving average crosses, where the 50 day is set to slice upward through the 200 day.

A leading indicator, the stock market is telling a story. Don't know about you, but I am listening.