“Back…and to the left”


Dear Trader,

Everyone seems to be talking about buying the Netflix (NFLX) dip – as the streaming giant slashed membership prices in about 30 countries this week.
I think it’s more complicated, as it appears stuck in the middle of an insane number of Support and Resistance levels.
So where’s the money sitting?
This is the daily lookback from last year’s blowout…when the stock got absolutely blasted from $700 to $162.71.

Remember? When the stock got blasted from $700.00 all the way to $162.71?

Ugly… Sorry, Bill Ackman – I wonder how long it takes for a $400 million sting to wear off?
But is NFLX on its way back or is it playing out the end of a dead cat bounce?
Let me explain what I mean here…
Before we get into it, we need to channel our inner Oliver Stone and look “back and to the left”.What likely has a number of longer term investors salivating is that massive gap — the top is over $500.00.

Sure, gaps get filled… but bearish gaps tend to take a while.

For reference, it took close to eight months for the second gap to close…

But with that out of the way, let’s dig into the recent moves.

Moving along with the broader market, NFLX is holding on with some relative strength as it has yet to fall below the 200ema in green while so many others have…

But we’ve got a problem here as momentum has dipped and the share price is stuck in a tight space between Support and Resistance channels.

Let’s check the lower chart…

You’ve read plenty about the TTM Squeeze from me by now, but if you haven’t, it’s my indicator of choice.

The end of the white dots show that the compressed price range has expanded and the histogram — now red and drifting lower — tells us the direction…

Magnitude of movement is another thing.

The Triple Stochastic indicator on the lower chart is where I go for that. And here, it’s falling with both the fast and slow settings (white and blue-pink combo, respectively), now below the midline.

I give it a thumbs down…

“How do you trade it?”

A close above $352.00, you’re looking at $375.00+ for a target.

Below $306.20, I’d ride the short trade to ~$275.00 or lower… At least, that’s where money is likely sitting.

Keep moving,


This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.

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