Here are your levels for Google (GOOGL) and Netflix (NFLX). (December 14, 2016)
We are getting a little bit of a sell-off today after the Fed hiked rates. So it is like what is the catalyst for the rest of the year? Nobody can really say, including me, so it seems kind of right for the market to sell-off. The underlying reasons for being long equities remain. What I am doing here is, I just want to talk about Netflix ( NASDAQ:NFLX ) and Google ( NASDAQ:GOOGL ) and give you some levels.
I am looking at this and it is fine to say, “Well, here is the all time highs for Netflix at 120.00 (we will say it is 130.00), the all time for Netflix is 130.00.” You can wait for the stock to breakout on that, and I think you are going to make a lot of money if you buy it when the stock breaks out. It has been consolidating for quite a while. If you are, say, an options trader though, you can make this kind of money because the implied volatility, the cost of these options is not really that high, you can make money by waiting for this stock to breakout, I have got it here at 125.00.
You can buy some calls on this, hold them, and hold them, and hold them. Then if the stock starts selling there at 130.00, you can go ahead and close out some of your position. Or you can hang on and see if the stock starts moving higher, and then you get even longer. But the thing I like about Netflix ( NASDAQ:NFLX ) is, it has been trading kind of sideways for a while, but it is not rolling over. It has been pushing up against this resistance like it kind of did here and here, but it is not rolling over. So as I look at this chart I just kind of get this feeling, because this has not really pulled back much and it is holding up, I really feel like if this stock starts to breakout above this level you are likely to see it push to 140.00 pretty quick.
Now Google ( NASDAQ:GOOGL ). I like the way this was trading today. When everything else was kind of taking a powder Google ( NASDAQ:GOOGL ) was actually hanging in there. It was pretty strong. I think this was during the ‘Yellen’ hour, when they first raised rates and this stock traded down. Since then it has been firm. So what I would look for here is, watch for the stock to breakout. I have got here 123.91; look for it to break out here and then I think your trade is to go long calls.
This is far enough back in time, with so much volume in between this high and where it is now, that if this stock starts trading up to this level I think you are going to get a real break out on Google ( NASDAQ:GOOGL ) going into the end of the year. Particularly since Eric Schmidt actually had the nerve to show up at Trump Tower today. That is a good thing. It bodes well for Google ( NASDAQ:GOOGL ), maybe we are not going to be getting any nasty tweets about Google ( NASDAQ:GOOGL ) (I’m joking, but only kind of).
So we are looking for this to be on a breakout. We are looking for Netflix ( NASDAQ:NFLX ) to be on a breakout. If you see those two things you are going to know one thing is for sure, the NASDAQ 100 is going to be strong, folks are going to be coming back into the tech sector, and you are going to be able to make money on both of these stocks.
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