NFLX Follow Up

This is a follow up to yesterday's post earnings, NFLX trade Set-Up post.

So far, so good, but again, things don't just suddenly reverse. The one lesson I've had to learn and re-learn (refresher courses) is that when you watch the market as closely as many of us do, we expect things to happen quicker. My general rule of thumb is whatever timeframe or percentage move seems reasonable, at least double it as the market moves in extremes.

As we were talking about yesterday relating to the ECB, F_O_M_C knee jerk reactions, Cramer etc. is that the market is driven by perception.  If you went to business school, price is dictated by supply and demand, but if you have seen multiple concepts that we use that work in all timeframes in every asset you can trade, what you realize is that this fractal behavior is possible for one reason only and that is while supply and demand may move prices, the direct driver of supply and demand is human emotion, fear and greed, that's what ultimately moves the market and why, "PERCEPTION" is so important.

that all being said, the point is simply NFLX as a trade set up is doing what it should do, what we expected it to do (see NFLX trade Set-Up ) and this is a process, not an event.

 Daily NFLX, the reason I include this is from yesterday's post, the  gap fill.

As for intraday activity, the negative divergence yesterday in 3C shows up in lower 3C highs and lows in white. Today's activity has continued on the same path and is represented in red.

 The longer term chart at 10 mins which we want to see continue to lead negative is in decent position, but ultimately before we're ready to start making any new moves, we need to get to the 15 min chart.

This is still in line, when the 10 min chart starts to see more deterioration it will move over to this 15 min chart and that's when we'll be in the zone.

In any case, again , so far so good. Another example of how deceptive price action can be.