Are you streaming with Netflix ($NFLX)? Here’s your trade.
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at Netflix ( NASDAQ: NFLX ) today.
You probably know what’s going on with Disney and Discover TV. There’s a little lawsuit going on because Discover TV is tired of having to buy this big bundle from Disney, with most of it just being crap that nobody wants to buy. Nobody wants to watch, and nobody does watch.
The whole bundling thing, and you’re paying for it, it’s just keeping alive a bunch of stuff that should be dead, we’ll put it that way. There’s a litigation going on there. My sense is, I don’t know when it will be resolved, it will probably be negotiated or something because if it’s not, if it does resolve and it resolves in Discover TV’s favor, there’s going to be blood in the streets. I would say a blood bath but we can’t say that, people get triggered.
That gets me back to Netflix ( NASDAQ: NFLX ) because they are the past, and they are the future. The stock is trading in this pretty tight trading range. It’s been printing higher lows here and it was printing higher highs. It actually still is, just not as much. Then it’s pulled back here to test 600.00. It has come up $100.00 and is now right up against this ceiling.
So guess what? There’s no trade here, but there could be, there’s just no trade yet. So what I would suggest doing (this will be a real short video here), what I’d suggest doing is, putting an alert right around here. Right around 700.00, it almost pushed through that today. Set an alert at 700.00, and if it’s still up at 701.00 or 702.00, and volume is heavier than average, I think this breakout could really be good.
It could work in your favor, especially since the Market is strong. It’s stronger than it was a week ago. I don’t mind buying breakouts when the Market is strong because they tend to work. But if the Market’s really heavy, as it was a week ago, breakouts don’t work, so check out the overall Market tenner, and then if you get a feelgood then go ahead and buy Netflix ( NASDAQ: NFLX ) a little bit above 700.00.
Just make sure you know what your risk is. Make sure you know where your stop is set, how many dollars, I don’t care about percentage, how many dollars you will lose on the trade, and make sure you’re okay with that.
Free Chart