The House Of Mouse - On A One-Way Rollercoaster

Walt Disney Company

shares are trading sharply higher by $6.70 at $100.80 in Wednesday's session. The catalyst for the rally is a $0.20 earnings beat ($1.27 vs $1.20) on better than expected revenue ($$13.39B vs. $12.87B). In a fantasy rally for shareholders, investors are grabbing every offer in site. Despite having some trouble at psychological resistance level of $100.00 off the open, so far it has reached $101.22 in today's session. What makes the rally more impressive is the fact that the company has only a 2.68 percent short interest (the quantity of stock shares that investors have sold short but not yet covered or closed out) Therefore, a small portion of the rally may be attributed to short covering, but a large amount of buying may actually be new longs entering the issue at these elevated levels.