HEre’s your plan for Netflix (NFLX) (November 12, 2015)
NFLX
I’m looking at Netflix ( NASDAQ:NFLX ) here. Here’s why: I don’t want you to buy it. This has been flirting with 115.00 for quite a while, even back here it was. But the real channel is between 115.00 and 95.00. The way the market’s trading this looks like it could be there for a while. So what I want you to do is just stand clear of this thing. If the stock starts pulling back, if it falls back to 100.00, that’s when you really want to be watching it.
I’m not saying you want to buy it necessarily, because it fell back to 100.00 here, and several other times, and kept going. Not a big deal, but 3, 4 percent maybe 5 percent. Well where I come from that’s real money. So what I want you to do is again, just stand clear, let the stock settle, and then really you just kind of want to wait for the first positive day, like the first up day, even we’ll say like this back here. Okay, you’re buying there. Well that didn’t really work out, didn’t really work out for you.
But, you wouldn’t have got stopped out if you looked at this intraday low as 96.26 and said, “You know what? I think this stock is going to continue to bounce. But I see the 96.26, I think I’ll put my stop a little bit below there. That way if I’m wrong and the stock continues lower I’ll just take a small loss. It’s actually not that small, but you get the point, I’ll take a small loss.” Well that didn’t happen. So instead the stock comes up and then you do what ever you’re going to do.
So the point is, you can’t buy this stock NOW, you can’t. You can’t buy this stock now and then get a feel for what’s happening when the stock trades tomorrow. If it trades lower tomorrow are you going to say, “Well I’m just a little bit early, but ultimately it’s going to break out.” No, you can’t. If you stand aside you can wait for the stock to tell you what it’s going to do. By the way, if it breaks out and closes above 115.00 then that’s a good time for you to be buying as well. Because what the stock is doing is telling you that it is in demand, more so than it has been down here, and this next move is likely to be higher. But right now this is just a multi-month consolidation.
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