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I'm Dan Fitzpatrick at StockMarketMentor.com on Saturday,
October 10th. Excuse me,
let's go up a month,
November 10th, there it is.
Okay, I want to look at Netflix ( $NFLX Netflix, Inc ) today and here's why.
This thing had basically about a parabolic move, two-day big day move and
since that time, over the last week, a little over a week,
it's been in this little flag pattern. It's been drifting sideways
allowing this 200-day moving average to kind of fall down towards the
price;
and so this is a consolidation in my view , so here's how you trade it. First of
all you look and say, "Okay, if this thing falls below the low end of the flag I'm out."
So you set your stop right here,
not lower, not higher, you set it right about there; if you get stopped out you're
out, that's okay, too bad, so sad, move on.
If and when the stock breaks out above this level, that's when you want to be
buying it. Now, if it starts to break out and it's on heavy volume
I'm not so concerned about the 200-day moving average, which yes, did
act as resistance here, that was where the selling started
and that's where the uptrend ended.
But the stock had to travel quite a ways from sixty up to about eighty
or so before it hit the 200-day moving average. Now, from this level,
it's going to have to travel like
two or three bucks, so it's going to be a lot easier for the stock, if it does get a
push higher, it's going to be a lot easier for it to break out
and that's about all she wrote here. You take this trade, watch for the breakout,
and you're going to wind up making money on this. If it's a fake out you're
going to wind up losing a little bit of money on this but you should not loose a
lot of money, this is a good risk reward.
Okay members;
get over to the Weekend Update. Also, don't forget,
if you haven't signed up for Option Market Mentor you can get a month for
$7.77. It's fully refundable, if you don't like it
we'll even give you your $7.77 back, so check that out
it's basically a no-risk trade.