Good news. The stop at 65 has not been hit and NFLX is once again making another rally attempt. The last rally in December was on takeover talk, but that fully retraced back to the key that I highlighted on the chart. As the numbers slowly get released and as investors realize how addicted subscribers are to the Netflix brand, value investors will continue to swarm around this issue and attempt to determine just how profitable they will be amidst all of the swirling competition for video streaming. NFLX has been dealing with content and keeping costs under control, but the fight is for marketshare and that means sacrificing profit margins. However, keep holding on as NFLX appears to be in strong hands and new buyers are emerging.
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I have to admit that I bailed at $81 this morning, but I may re-consider or re-enter if there is no pullback in the next few days. Sometimes I get nervous in strong trends and exit too soon. I did call for $80-$85 in January back in early December, so I felt that was somewhat of a justification to exit on such amazing relative strength and a fabulous "January effect", short squeeze rally in NFLX. I took 20 minutes today and listened to a Bloomberg Radio segment from a famous analyst who was trashing NFLX's business model. I don't mind the negativity as long as a stock is breaking out and showing relative strength. Hope you all did well too. Cheers. Technical Tim 10:06PM EST Thursday, Jan 4, 2012