DIS, MCD, NKE update April 10

These three stocks are main staples of the DOW, comprising 11.07% of the total DOW index (with AAPL, see other update here) we cover 15.3%. A rather significant fraction. As such , these individual stocks are a good insight on how the DOW will perform.

DIS: Looks like major b could have topped at a little over the 38.2% retrace. Due to the overlapping nature of the price advance since the February low, we cannot assign an impulse count to the recent advance. Although b-waves can go higher and the 50-62% retrace levels at $104-108ish are not off the table, a break below $94-93 would put this stock on serious watch; and there with the DOW of course too.

DIS

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MCD: Very simple here. It looks like MCD has topped or is very close to topping. It hit the 200% extension of major 1 of Primary V perfectly, after major 3 hit the 161.8% extension and major 4 hit the 123.6% extensions. Both are text book, ideal, picture perfect Fib-extensions for 3rd and 4th waves. Now given that 5 often equals 1, MCD could hit the 223.6% extension at $133. But, there are now enough waves in place for major 5 to call it possible complete. Regardless, any upside is limited to $5ish/share, while downside risk is $60-$70. In other terms: another major component of the DOW close to completing…

mcd

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NKE: So far we can only count -and clearly see- 3 waves up from (yellow) major a to major b. Since that high price is close to dropping below the (red) intermediate b low, which would take any 1,2,i,ii possibility off the table. Given how the (regular) weekly TI chart looks -not shown here-  with all TIs pointing down we expect price to drop to the ideal wave IV target zone at $52-$45. Also here, this does not bode well for the DOW as we now have already 3 stocks that want to see downside instead of upside.

nke