Is it time to be buying Netflix ($NFLX)? Here’s my take. (January 22, 2020)
NFLX
Netflix ( NASDAQ: NFLX ); the company reported earnings after the market yesterday and it was whipping all over the place. First it sold off then it was actually up and then finally by this morning people figured out that maybe they’re not doing that great after all so the stock is down.
What I would suggest doing is this: I wouldn’t really be watching the stock at the 200-day moving average, right here. I would be watching to see more how the stock trades at the 50-day moving average; because that’s the real trend indicator. You can see after this ultimate low we get higher lows here and then higher highs, higher lows, higher highs. And so right now this stock is close to the 50-day moving average but it still has to pull back about 3 percent or so.
So what I would do; the stock is at 326.00 now, I would look for 320.00. Look for 320.00 before you even consider buying the stock. And even then you are really, probably going to be a little bit early. I will say this, if the stock gets down to 320.00 and holds there for a bit then maybe, if you are listening to this video Wednesday night, then maybe by Thursday afternoon it might be something that you could buy tomorrow afternoon. Maybe Friday or most likely even the first of next week. Because when this stock pulls back like it did here it kind of takes a couple of days to gather itself. And what I think you don’t want to do is expect this kind of move. That is just not the way this stock should trade with this big sell-off so near in time.
Let the stock kind of settle in a little bit. As long as it holds above 320.00 you are good on the uptrending stock and you just keep a fairly tight stop on this, like that. That’s how you can trade this stock. It’s not a super out-performer with respect to the overall market. But a lot of times people just kind of get their stocks that are their favorites. You can make a ton of money if you are just trading the swings correctly on this.
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