NFLX Follow Up

I posted the following last Thursday, Trade Idea: NFLX Short and right after, NFLX Follow Up.

Since then, the position which was moving up pretty consistently is flat (since the entry.

The long term charts are deteriorating more (30-60 min) and today you can see the 3 min chart is nearly perfectly in line. Two thirds of stocks will normally move directionally exactly the same as the market although there will be differences in relative performance, which is why NFLX is interesting here, not only the longer term charts deteriorating more in 2 days, but the in line 3 min chart as NFLX moves directionally with the broad market, is seeing that come to an end.

 The longer term 60 min chart has deteriorated more since Thursday's post, remember this is a long term timeframe and they usually don't move very fast.


This is the 30 min and it too has deteriorated.

Intermediate timeframes are just more confirmation of the longer term so I haven't included them because of redundancy, however as shown last Thursday, the reasoning for the NFLX trade concept after well over a month of watching and waiting was on the short term timing charts, that's also of interest today.

 You can see the negative last week for the short term timing and why NFLX was posted, late Friday like several other averages and the Week Ahead forecast fir early price strength in the week (Mon.), you can see a small hour long positive divegrence on a 3 min chart, nothing very big, but exactly what is needed to move NFLX directionally with the market today.

as with all divergences, any new divergence, even effecting this 3 min chart will start on the fastest timeframe, 1 min so today's "IN LINE " 3C signal (green arrow), is actually already deteriorating...

The late Friday positive on a 1 min chart, remember the concept that 3C charts pick up where they left off so Monday it picks up on Friday's late positive and moves up, however that is already changing and going negative on the intraday chart which should be hitting that in line 3 min any time.

Thus I still like NFLX broadly and still like it in this area specifically.