The “In the Face Of Fear” Trades strike again!
It’s no secret who the star attraction is so far today. It’s all about NETFLIX — NFLX
So let’s talk about it for a moment.
How many times have we talked about the face of fear trades around here?
How many times have we talked about Elliot Wave abc’s?
How many times have we talked about buy the dips of issues in clearly defined uptrends at support?
NFLX is a perfect example of all of those set ups wrapped into one stock.
Talk about symmetry. Right now it’s real simple. Trend channel support is the lower green line. Trend channel resistance is the top green line at about 210-212. A retest of the recent highs is 205 so to the upside those are places where we’ll have to deal with some issues.
For those of you who bought the December 165 Calls the clock is ticking. From the opening volley of the “In the Face Of Fear” trade trigger alert the other day this issue for you is now sporting a move from 20.95 to about 30.45 That’s a huge gain in the short term no matter who you are.
So where to from here? All we know is where the technical support and resistance levels are, actually that’s all one ever needs to know when trading stocks.
As an aside from what we understand there are 11 million shares short this issue, but that doesn’t mean they are all going to cover. And the index funds have 5 days before this issue is in the SPX. What remains to be seen is whether we’ll have an upward bias from now till then.
That also by the way is right smack dab into options expiration for December.
And right behind NFLX is ZAGG and then CIS — all of this while the indexes continue to consolidate and chew here with an upward bias. No complaints out of us and from the many we’ve heard from either as those NFLX call options have been screaming!
That crossover of the pink line was all you needed to know. One could say it was also the “Coming Up The Right Side Of Cup” crossover.
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