vlad.adrian
Long

Netflix - Jumping on a strong uptrend

NASDAQ:NFLX   NETFLIX INC
352 3 0
It's hard not te             be impressed by this wonderful uptrend, even harder to resist not jumping in. I'm glad I didn't do it until now, though I was tempted. I believe the time has come to try and profit from what may be the last push up.

We must first consider market conditions. The tech index , Nasdaq 100 recently dropped a lot, and it looks like it reversead today. Netflix             has a great correlation, the only difference is that in 2013 Netflix             gained 300%, while the NAS100             a bit under 50%, so Netflix             is more attractive.

The main attraction is the great risk reward ratio. Entering now, and setting a stop under 350$ offers a 5% risk. Only 5% , when the previous high is 25% away. That's a great risk reward ratio. No matter what is going to happen, this is a trade I want to be in, the risk/reward ratio is just too attractive. As I said in the chart, I won't be setting any target like I usually do, I will move my stop loss to breakeven if it moves up and leave it there. If I'm right and it will rally, I will look to add.

All the technicals are all labeled on the chart.

Note that the situation looks simillar on most of the "Bubble stocks". I recently posted long ideas on Amazon, 3D company and Facebook             . They are all linked. If the market won't work, most probably all of them will fail. Out of these four stocks where I spotted entries, most appealing are 3D and Netflix             .
Stopped out 04.04.2014
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TzvetanPopov
2 years ago
to early. Wait till 320... then see
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vlad.adrian PRO TzvetanPopov
2 years ago
Nope. It might bounce from 320, but that wasnt my trade. If I'll see a buy signal there, I'm going to take it. For now, I want to be out, because I have expected something and it didn't happen, so clearly I was wrong
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