Author: The INO.com Team

Has NetFlix Topped Out?

Posted on by The INO.com Team

We have had a very good run in the stock of Netflix (NASDAQ:NFLX) and the question now is, has Netflix topped out?

netflixThere is increasing evidence that Netflix is having problems over the $300-$310 area. With a lower close in this stock today, it will confirm that it has put in an intermediate top.

Yesterday, Netflix (NASDAQ:NFLX) put in a Japanese candlestick pattern known as "a dark cloud cover." This is confirmed as a top if the market closes lower today, September 17th. Candlestick patterns can be very powerful. This is not to say that Netflix has put in an all-time top, but rather in the interim the market has stopped going up and is probably going to see a pullback.

NETFLIX TOPPING
Pullbacks are always interesting and I like to use our Fibonacci retracement tool to measure them. In 2013, most of the pullbacks were in $30-$40 range. Measuring from the recent high of $314.18 on September 11th and subtracting $40, takes us down to $274 area. Coincidentally this is very close to a 50% Fibonacci retracement if we measure from the recent high on September 11th to the low seen on July 25th at $239.91.

I have two other concerns with Netflix (NASDAQ:NFLX). We are at a cyclic high and the MACD is beginning to roll over, which is similar to what happened in the May and July periods.

Please be aware I am not recommending shorting Netflix, as the longer-term trend for Netflix remains positive and I can see this market doing well longer term as it dominates the space of streaming video and home entertainment.

Let's watch today's close in Netflix very carefully. A close below the $301.13 level will represent a new 5-day low close for this stock.

This is just a heads up that Netflix may be running into some headwinds and profit taking.

Please feel free to leave a comment or your own view on the stock.

Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Is Apple A Buy At These Levels?

Posted on by The INO.com Team

appleThe price action last week and today in the stock of Apple was reflecting the perception that Apple's new offerings were not up to par and offered no major breakout technology. The press and the general markets were generally negative on Apple's latest offerings. The new iPhone 5S and 5C have been largely pooh-poohed in the media.

I think the market has overreacted in the sense that no company, not even Apple, can keep coming out with groundbreaking technology with every press event they host. I believe the market has overlooked the fact that these are very strong offerings and that Apple has a loyalty base like no other company on the planet, myself included.

apple1
The security fingerprint technology that Apple introduced is quite remarkable, and lends itself to so many other applications. Security is going to become more and more important to even the average smartphone or tablet user in the future. Apple's introduction of this technology is going to be very important in the corporate and enterprise world and may send a crippling blow to Blackberry. Fingerprint security could be used in so many yet-to-be-discovered applications for financial transactions and online commerce. It has an enormous future, but the market just hasn't recognized it yet.

As a reader of this blog, you know I look at the market on a technical basis and one of my technical indicators is telling me that Apple may be close to a turning point. The Williams%R indicator, shown in the form of yellow lines on today's chart, indicates the cyclical pattern of Apple and shows that this market is very oversold. Apple has also pulled back to an area of previous long-term resistance. This resistance area should now act as support.

The stock of Apple has also pulled back to our major trend indicator, which remains bullish. This is not so unusual to have a retest of the long-term Trade Triangle signal, in Apple's case at $465.75. The current pullback in Apple is approximately a 50% retracement and is a Fibonacci support area.

This week I expect Apple to begin to find support around current levels, give or take $5 to $10. I believe that Apple is close to an important cyclic low period and the roll out on Wednesday of Apple's IOS7 system could be the catalyst to once again turn Apple to the upside.

What do you think?

Feel free to leave a comment.

Adam Hewison
President, INO.com
Co-Creator, MarketClub

Stocks Soar With Summers' Exit

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 16th of September.

News that Larry Summers was withdrawing his name for consideration as the next Fed chairman sent stocks soaring overnight in Asia and Europe. When the US markets opened, it followed through and helped push many stocks to new highs. Today I will be looking at the indices and certain stocks that I think are worthy of your consideration.

I will also be looking at Netflix (NASDAQ:NFLX) and Pandora Media (NASDAQ:P). Can they still grow and make money? Continue reading "Stocks Soar With Summers' Exit" →

Summer Is Over and Larry Summers Is Out Of The Running

Posted on by The INO.com Team

Larry Summers officially fell on his sword over the weekend by removing his name for consideration to be the next Federal Reserve chairman. I'm sure this came as a relief to the White House (they probably orchestrated the move), who has more than enough on their plate right now with Syria and finding more money to fund the government at the end of September. It also sparked a huge overnight fall in the stock market.

So the question is, are we going to see a female dollar? I hope so, I think it could be a nice change to see what a female could do as chairperson of the Fed. I am of course referring to Janet Yellen, who is number two at the Fed. One thing I think about government and politics is that you can be completely incompetent and if you just stay around long enough, you get pushed up the food chain to the top job. The official name for this phenomenon is the Peter Principal. The Peter Principle is a proposition that states that the members of an organization where promotion is based on achievement, success, and merit will eventually be promoted beyond their level of ability. The principle is commonly phrased, "Employees tend to rise to their level of incompetence." Continue reading "Summer Is Over and Larry Summers Is Out Of The Running" →

Gold Chart of The Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (September 16th through September 20th)

Out of the fifty-two weeks each year, this upcoming week is one that I personally look forward to the most. Since the financial crisis several years ago, this week has been a standout year after year. There are several reason for all the hype, which I will share in the next few paragraphs.

First and obviously most important is the fact that the September FOMC Policy Statement is shared on Wednesday afternoon. We will hear about the FED’s decision on Interest Rates and whether or not they plan to taper their Bond Purchase Program (QE) from 85 Billion, or if they feel it is necessary to stay the course. Without having the ability to sit in this important meeting, traders will either begin speculating on the outcome before Wednesday afternoon, or they will keep the proverbial powder dry until after the announcement is made. Either way, I expect steady volume to return to the markets leading up to, and after Wednesdays disclosure. Continue reading "Gold Chart of The Week" →