Has NetFlix Topped Out?

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.

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 Netflix The New HBO?

I am taking a little time off up at my summer home in Maine, mainly to escape the heat and humidity of Maryland. My home is about 10 miles from Brunswick, home to Bowdoin College, a nationally renowned liberal arts school. I say that for a reason, because one of Bowdoin's most famous alumni is a gentleman named Reed Hastings. Now Reed Hastings is not exactly a household name, but certainly the company he founded in 1998 is … the name of that company is Netflix.

I just finished watching an interview with Reed Hastings and wow, is he ever focused on delivering a first-class customer experience. Before I go any further and for full disclosure I do subscribe to both Netflix's streaming and DVD service.

As Netflix (NASDAQ:NFLX) just announced their earnings yesterday after the bell, I thought maybe it's time to update my outlook on this stock again. I have been talking about this stock's upside potential for months and I am not alone as Carl Ichan also likes Netflix and is one of its biggest investors. Yesterday's dramatic drop after Netflix announced its earnings was perhaps a little bit of a knee-jerk reaction. In today's video, I will be looking at both long-term and intermediate-term trends using MarketClub's tried and trusted Trade Triangle technology.

The old adage of "follow the money" applies to all stocks and is the right one to use, in my opinion. So without further ado, let's delve into the world of Netflix (NASDAQ:NFLX) and see where it has come from and where it's going.

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So what are you waiting for? Let's get started right away!

I think you'll enjoy this short educational video as I walk you through every trade signal we have had in Netflix for 2013. You will also gain a great understanding on how to incorporate our easy-to-use Trade Triangle technology into your own portfolio.

All the best,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Today's Video Newsletter: Facebook and NetFlix form an alliance to learn more about you

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 13th of March.

Today Netflix and Facebook announced a sharing of data. You can view this in two ways, either it's very destructive, "these folks are learning way too much about my habits," or you can look upon it as a business opportunity. For Netflix, I believe it is more of a plus than it is for Facebook. The new add-on service tells you about what movies your friends are watching and in-turn, it tells your friends what movies you are watching. This could be a very positive move for Netflix. We have been bullish on Netflix for quite some time (12/04/12 @ $89.45) and this is yet another strong signal that Netflix can move higher and over the $200 mark. At the present time, we have upside target zones of $200, $220 for this stock. Continue reading "Today's Video Newsletter: Facebook and NetFlix form an alliance to learn more about you"

If Slovakia votes no, stocks tank tomorrow

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 10th of October.

This morning I was reading that there are approximately 3.2 million job openings here in the United States. With more than 14 million people out of work in this country, how can we possibly have 3.2 million job openings still not filled?

These are job openings that the private sector needs to fill. I know from our own experience here at our company, finding competent people it extremely difficult. Part of the problem, in my opinion, is that many job applicants have no skills.

The CEO of Cummings, Tim Selso said he can't find skilled workers for his manufacturing plants. This is a common complaint that many CEOs share.

According to economists, the average worker contributes about $45,000 a year to GDP. If we could just fill 1/3 of those jobs, it would have a huge impact on the economy.

Like many traders today, we were surprised at the velocity of the rally which is based on a potential agreement coming into place in Europe. At the moment no one knows what the deal is, and nobody in a position of authority is indicating what the deal is. The vote from Slovakia has the potential to torpedo any recovery and is a big hurdle approaching tomorrow. If that tiny country votes "no" to this proposed agreement, it could send stocks, and in particular bank stocks, to the cellar!

That leaves us with just one option... What are the Trade Triangles saying?

------------- Continue reading "If Slovakia votes no, stocks tank tomorrow"