I think NFLX is probably pretty close to as good as it gets in this area as a short set up, I've been watching all day and it just keeps looking worse and worse.
In past pivots it has made anywhere between a 2 and 7% head fake move, a couple have had none.
The longer term strategic charts have looked bad and that's why it has been on the list, especially this last August move.
This 60 min chart is falling apart sharply with a leading negative divegrence, that's a pretty serious signal in such a short timeframe considering the underlying trend of weakness already present.
Here's the 30 min chart showing the August move was essentially almost pure distribution.
Here's the set up or accumulation for the cycle, it was larger for NFLX than the broad market which was 8/1-8/8, however this is leading negative as well and sharply.
It's these closer timing charts that are really getting ugly.
There have been quite a few stocks and averages, the Q's especially that have looked horrible since yesterday's gap up, this is obviously one of them.
I'd consider NFLX a short here as a position trade, I'd want a pretty standard stop on it, like I said at the top, one of the sharpest head fake moves it has put in was about 7%, but again there have been multiple pivots with no head fake at all. I can live with a 7 or 8% stop here, it's actually pretty tame for a stock like this.
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