NFLX Charts

First off, whatever you do, don't panic, this kind of market volatility can cause you to make some choices that you might not otherwise make. There's ALWAYS another bus.

As far as NFLX, I do like it a lot as I do PCLN, GOOG and lots of others, they'll give plenty of opportunities.

As for the NFLX charts though I want to show you why I consider this a core or trend short.

 This 2 min chart is the post I referenced earlier from Tuesday regarding parabolic moves in GOOG, NFLX and PCLN, I was saying that these moves weren't as they seemed, you can see the clear leading negative divergence rather than any confirmation of the moves.

 You'll notice a trend as we move to longer charts starting right after this small accumulation zone, you only see it on very short term charts because it was not large enough to show up on stronger charts, usually this means they are putting enough money in to the asset to move it in their direction (to sell or short), but they aren't putting that much money as their intention is not to accumulate, but to distribute, but they need higher prices and demand to do that in the size they trade in otherwise they drive the position against them,selves.

 10 min you can't see any sign of the accumulation from the 5 min chart, the distribution above that is still there because that's the heavier underlying flow.

I love these charts that go from confirmation of a healthy trend and transition in to something else, in all cases it's the run after that little island accumulation bottom area.

60 min chart. No words required...

This is the daily chart, again confirmation to the far left right during the prime of QE and a negative divergence, it's seemingly not that big, but in reality before 2009 that would have been considered a respectable divergence. You can see a clear stage 1 base (rounding) with accumulation on a daily chart and the trend that emerged from the base. You might notice the ROC in price as it gets more and more vertical, this is what I mention often, that seemingly bullish price trend is really a red flag to tighten stops as it is seen just before a top, again, "Changes in character lead to changes in trend".

You can also see very clearly the area we have been looking at which looks nude all alone and green up there with no 3C confirmation at all, but rather a leading negative divergence. This is why I like NFLX on a longer term trend scale, although I think we get many opportunities to trade NFLX from both directions.