Netflix Does “The Slinky”

The Slinky is NOT a chart pattern you want to see: when your stock looks like a slinky going down a flight of stairs.  Exhibit A: $NFLX:

Netflix 1 Year Chart

Now, you may be tempted to look at that chart, crank up your inner “mean reversion” instinct, and say “Wow – CHEAP! look how much it’s down!”  Indeed – NFLX is well off its highs.  From $300 to $75 – that’s a 75% off sale!  So lets go to the two year chart for some more perspective:

Netflix 2 Year Chart

Remember “You’ve come a long way baby?”  It always depends on your perspective!

-KD

disclosure: I have no position in $NFLX.  My trader’s instinct is that if you’re buying the stock here, it has to be for a quick trade, as it looks like it will go lower before it goes higher long term.   Then again, you could have used my July 7th post on NFLX’s strong upward momentum as a perfect contrary indicator to time NFLX’s top almost TO THE DAY.  Which is why I don’t give trading advice.

Kid Dynamite is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. If you click on my Amazon.com links and buy anything, even something other than the product advertised, I earn a small commission, yet you don't pay any extra. Thank you for your support.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Kiddynamitesworld Blog