NFLX Short Set-Up

It has been a week or so since I last covered NFLX, I think this Sept. 4th post is the most useful reference, NFLX Looking Very Ugly Here. Since, NFLX is down nearly 6%. I have already filled out a longer term core short position in NFLX so all updates are for your purposes regarding entry or trade management, in other words I likely won't issue any new "Trade Ideas" that are action events I take in placing them in the tracking portfolio at that moment.

The white arrow is Sept. 4th's update, even the trendline is from Sept. 4th, we were looking for an entry above that trendline, a head fake or failed breakout which we got at the red arrow, this is why I always advise to set price alerts.

 Since Sept. 4th and the next entry, NFLX has trended lower in lower highs/lower lows.

Big picture, I'd take NFLX anywhere in the area, I actually have the position that was phased in to averaged in this area, however this is one of several stocks that looked like it could bounce a little higher than it is right now, not necessarily a new high, but a better entry.

 Here's the daily 3C chart, a lot of strong distribution in NFLX and a price pattern that I believe is similar to a broadening top.

 The 4 hour chart confirms the weakness, this is the kind of chart I don't ignore which is one reason NFLX has been a long term short set up favorite.

 The 2 hour chart also confirms the distribution from the last rounding bottom/accumulation creating a higher high. The 609 min chart and others also confirm, but I think we have enough strategic confirmation to call this a nice longer term short position, now it's the tactical entry.

 The 10 min chart is one of the longest timeframes that suggests NFLX could bounce although some market cooperation would go a long way in helping it do that.

 This 3 min chart which has a positive divegrence this week just like the main averages did since Monday, still suggests some near term upside, that's what I want to short in to for a new or add to position.

The 1 min chart for today shows there wasn't that much damage done and probabilities still point to a higher move so if you like it, I'd set price alerts,  just remember, longer term anywhere in the area is a great entry so anything better than where we are today is an even better entry short NFLX.

For now the daily Trend Channel is rtracking the Swings, that would suggest a bounce would likely hold up around the $460 area so you know where to set alerts to, although with the divergence it could move a bit higher.

This in my view is either a short here and now or you can wait to see if it comes to you in which case, if it doesn't, no harm no foul, you just move on to the next opportunity or the third possibility is phasing in to the short with a partial position i the area and add to it on any subsequent moves higher so long as your risk management reflects that plan.

I do love NFLX as a long term short position though.