NFLX (Long Term) Trade Set-Up

You might be surprised to hear "NFLX Trade Set-up" since I've put this out as a trade idea and reiterated it probably a dozen times, but just like the market, just like PCLN, just like AAPL, just like IYT, just as my opinion was this morning, Opening Indications / Short Term Opinion. concerning the broad market bounce probabilities (and the fact that about 2/3rds of the market of stocks will move directionally with the stock market), so NFLX looks as if it too will offer another entry if you are interested in a short there.

NFLX is one of my favorite short trades for a longer term position, these few charts probably are more than enough to make the case as to why...

 NFLX Daily H&S Top

4 hour 3C @ H&S top

60 min at H&S top

30 min @ top of right shoulder...

In other words, there are a lot of great reasons not only from an underlying distribution point of view, but from a timing point of view in a major price formation.

As far as near term, I don't expect it will behave much differently than the broad market. I do expect whatever comes of it, it's over by 2 p.m. Wednesday at the latest.

 This is a 5 min 3C chart for NFLX, the 1-5 min charts are positive and you might notice it started around 2 p.m. yesterday , the same time as the market averages as you can see in last night's post, Daily Wrap.

I'd normally go with the X-Over Screen for a target, but it's really meant for daily charts, the X-over is so new in NFLX, the longest chart with the sell signal is the 60 min. Since there's not much room, on a daily chart with a crossover that is confirmed, I'd say the first correction is to the 10 (yellow) and the second to the blue 22-bar moving average. In this case, they're so close, I'd say the 22-bar is pretty much a given. In any case, I'm going to set alerts at $426.50 and a few just above so I don't miss the move and the ability to double check the short term charts and put out the Trade Idea.