Monday, July 25, 2011

NFLX Short Trade Idea Follow Up

I posted NFLX as a short trade idea on 7/17 and 7/18 with a stop in the $290-$295 area. The stock never bounced higher then $287 on a closing basis since the posts were presented.

NFLX reported tonight and came in with a big miss. In both posts I mentioned I thought NFLX would become an excellent trending trade once the top was broken, tonight the top is broken with NFLX currently trading at $253.50 or about 10% lower then an entry around the time I posted the NFLX short idea.

 Here's the daly chart with a bad 3C divergence.

The 15 min chart pinpointed the top.

If you are in this trade, contact me about a stop/trade management. If not, 'm sure we'll have plenty of chances to get a position opened.

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