Netflix (
NFLX
) has been a market darling for the past two years. It has run up hugely on a cocktail of debt and multiple expansion. The company continues to require debt to fund its content creation in an ever increasing competitive environment (think
DIS
,
AMZN
,
AAPL
). AAPL reported weak guidance yesterday which I believe marks the end of the FAANG and SPX bull run.
The company has recently broken significantly below its 200 day EMA and backtested the same trend line before closing below. This confirms to me that the market has turned and there is significant downside from here. Short interest is low so a short squeeze is unlikely from here.
There are two gaps open on the daily chart which could act as targets.
Stop loss and profit taking is determine by a closes about the 200EMA.
NFLX
) has been a market darling for the past two years. It has run up hugely on a cocktail of debt and multiple expansion. The company continues to require debt to fund its content creation in an ever increasing competitive environment (think
DIS
,
AMZN
,
AAPL
). AAPL reported weak guidance yesterday which I believe marks the end of the FAANG and SPX bull run. The company has recently broken significantly below its 200 day EMA and backtested the same trend line before closing below. This confirms to me that the market has turned and there is significant downside from here. Short interest is low so a short squeeze is unlikely from here.
There are two gaps open on the daily chart which could act as targets.
Stop loss and profit taking is determine by a closes about the 200EMA.