NFLX Trade Set-Up Follow Up

I'm aware there are quite a few of you either in NFLX or wanting to get in so as a follow up to the post earning's NFLX trade Set-Up and yesterday's NFLX Follow Up, here are today's charts.

This is one of the stronger moving divergences out there, but if you check the original Trade Idea, the position is not ready in my view until the 15 min chart is taken out, this is the one that was set up to send NFLX higher to fill a large gap, despite really crappy earnings and it's the one I'd be patient and wait for, I think if you do that, you'll have a really nice entry and longer term trending position.

 Remember this week's extensive comments about "Perception" being the driving force behind the market, NFLX is a good example of that as earnings really stunk, worse yet, guidance was off.

I don't see any reason for NFLX to have made the post earnings move it made other than the large gap that I'd think some middle men got caught off guard and had inventory at those higher levels.

As was also mentioned, specifically in shaping perception through price action, the 15 min chart looks like a perfect set up to move NFLX no matter what the earnings were, shaping the knee jerk reaction of perception and allowing those middlemen who were caught on that gap down with inventory at higher levels to alleviate that problem.

 NFLX intraday today so the pounding in the 3C charts continues, one of the strongest divergences out there.

This is a longer view of the same chart so you can see the extent of the leading negative divergence.

The 10 min chart is seeing movement to a new leading negative low so I'd think it won't be long before it migrates to the 15 min chart where the entire set up took place.

15 min "W" bottom, more than enough gas in the tank to fill that gap. We'll know things have changed once this chart goes from in line to negative and judging by the depth of the divergences, I don't think it will be too long.