Netflix is still working, as long as you’ve got the right timeframe. (January 10, 2013)
NFLX
Good evening Dan Fitzpatrick at StockMarketMentor.com on Thursday, January 10th. Just a quick reminder, the “High-Octane Options” workshop, it’s an online streaming course, or streaming online course, is on Saturday, that’s the day after tomorrow, and you can just go to the home page of Stock Market Mentor or OptionMarketMentor.com and get the sign-up information. I would tell you that seats are going fast, so reserve yours before they’re all taken, but since it’s an online course guess what? There’s room for everybody; but I still think you need to take it, all right? How’s that for some slick sales? Okay look, Netflix ( $NFLX Netflix, Inc ), this is a stock, it looks like it’s pretty overbought, it looks like you don’t want anything to do with it right? Well, not so fast Horshack, because if you just kind of zoom out you can see what’s happening. This has been in a basing pattern for quite awhile, and it’s just starting to drift higher. If you look at the red line here, that’s the 50-day moving average, it’s really just in a nice uptrend. We’ve got this bullish crossover awhile back, between the 50 and the 200-day moving average. Depending on the steepness of the 200-day moving average verses the 50-day moving average, this can actually be more of a sell signal than a buy signal because it just kind of happened so late. Here, that’s really not the case, because again, if you just zoom-out you get a better sense of the price action and where this stock is relative to where it was before the bonehead decided that he was going to split up the business and basically give you less for more and you don’t get your DVDs and all that stuff, so bad deal. The company is basically recovering from that, but if you just use the 20-day moving average as a reference for buying, then you’re going to be fine on this one. I would suggest though, you know, you look at $100.00 as resistance, that’s where it is right now, but just buy the dips, by these pullbacks when they get closer to the 20-day moving average, and I think it’s okay to start scaling-in now if you’re late on this stock, it’s really okay; just again, make sure you have a longer term time horizon, slide the chart over, say, Wow! In about four or five months this thing could be near a $150.00 if this trend continues. Anyway, that’s how I would trade Netflix ( $NFLX Netflix, Inc ). Members get over to the Strategy Session, a lot of stuff to talk about on this breakout today. Free Chart