NFLX Update

Our short term Call position for a bounce in NFLX, entered on Friday in part to offset the longer term equity short on bounce expectations is up (at last look) around +75% this morning. I was EXTREMELY tempted to take those gains off the table immediately, but decided to see if the market turns and supports additional upside as we expected a weak start to the market today.

Here's Friday's trade idea, Trade Idea: VERY SPECULATIVE...NFLX Short term CALLS and the charts to go with it from Friday, NFLX Update.

Thus far this morning, here's what we have.

 NFLX 15 min chart since the earnings gap up and today's gap to the far right on the largest volume seen since the earnings gap up.

 As shown, there were already significant positive divergences/accumulation in NFLX and this intraday chart showing accumulation late yesterday on a "timing" timeframe(intraday 1 min) shows the opposite of what the market was showing, that NFLX would likely have a strong start to the day.

The 2 min chart also showed that NFLX was close to a move higher which is why I held it yesterday despite its lack of movement, the underlying charts looked good.

Here are several larger divergences like a 10 min leading positive.

And a 15 min leading positive.

However, these are short term divergences only, they did not put in the time or the base to support a new leg higher in NFLX beyond the expected bounce.

We do have a long term equity short and we have been looking for an area to either add to it or offer a new entry for those interested so as the NFLX trade begins to see distribution of this gap up, we'll be looking at that trade next...

Longer term primary trend 60 min NFLX chart showing distribution in to both of the last earnings gaps up. NFLX should be lower over the next 6 months, significantly lower, but for now, lets squeeze what we can from today's gap up and the +75% gain just this morning alone.