Investors need to be in theme stocks, not meme stocks, Jim Cramer told his Mad Money viewers Tuesday night. Stick with well run companies that work no matter what happens with the pandemic. Cramer said he's looking for stocks that have excellent management and can thrive in any environment.
Stocks like Walt Disney Co. (DIS) have surprised investors by doubling down on streaming, but the company will also flourish once movies, theme parks and sports are back in operation, Cramer added.
Let's check out the charts.
In this daily bar chart of DIS, below, we can see a mixed picture. Prices are in an uptrend and have doubled from their March low. DIS is trading above the rising 50-day moving average line which it tested successfully the other day. The slope of the 200-day moving average line is also positive. Trading volume has been steady with a surge in December when the price gapped higher.
The On-Balance-Volume (OBV) line shows an acceptable rise from May.
The Moving Average Convergence Divergence (MACD) oscillator is in a downtrend and close to the zero line but the two moving averages have narrowed so we may see a bullish crossover in the days ahead.
In this weekly bar chart of DIS, below, we see a mixed display. Prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly trading volume histogram shows that volume has been declining the past year.
The weekly OBV line shows weakness from early December. The MACD has narrowed the past month suggesting that the strength of the uptrend is diminishing.
In this daily Point and Figure chart of DIS, below, we can see a potential upside price target in the $203 area.
In this weekly Point and Figure chart of DIS, below, we used close only data. Here the chart suggests a target of $300. Impressive.
Bottom line strategy: All things considered, the charts and indicators of DIS are mixed. Some tools are bullish and some not so much. I would put DIS on a shopping list. I am waiting for a little more clarity.