Category: Trading Videos

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" →

A Mystery Stock That No One Is Talking About

Posted on by The INO.com Team

mthumbOne of my favorite things to do is to look at charts and chart patterns. The pattern I'll be showing you today, I've seen a thousand times before. What I like about this pattern is that it is very reliable.

I am going to share with you a stock that no one is talking about and is probably not on anyone's radar at the moment. It has a similar analysis and pattern to Apple stock, but before Apple had its big up move.

Now I have to admit, this stock may not be as appealing as Apple, however it is a big, well-known stock. You will recognize the name immediately when you watch the video.

I had put this stock in my portfolio a while back and had almost forgotten about it, when it popped up in the little chart box on my personal MarketClub homepage. The chart pattern of this stock immediately caught my eye and demanded more analysis on my part.

See if you agree with my analysis. If you have a different view on this stock or think you see something that I have missed, please feel free to leave a comment. Buying or selling, agreeing or disagreeing, that is what makes a market.

All the best,

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

 

A Short Guide To The Middle East

Posted on by The INO.com Team

With so many comments and votes on our Is Putin now dictating American diplomacy in the Middle East? poll -  I thought that this newspaper clipping might help clear things up. It reminds me of the famous Abbott and Costello routine "Who's on first?"

Feel free to leave a comment and your viewpoint. Sometimes you just have to laugh at what is going on in the world. It really does help relieve the stress.

Enjoy,

Adam
Adam Hewison
President, INO.com

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