Is Netflix, Inc. (NFLX) Stock Finally Ready to Break Out?
Shares of streaming video innovator Netflix, Inc. (NASDAQ:NFLX) haven’t been doing much over the last few months. NFLX stock has been stuck in a sideways consolidation range since January as investors worried about user metrics and increased competition from the likes of Amazon.com, Inc. (NASDAQ:AMZN) and others.
After a test below its 50-day moving average in Monday’s midday trading was aggressively bid, Netflix stock looks ready for another upside run — possibly breaking out of three-month resistance near $145.
Netflix and Amazon are now so big that they’re changing the way global TV shows are financed
Streaming services like Netflix and Amazon have already changed the rules for TV and film in Hollywood—they’ve boosted production, revived the market for older and out-of-production shows, and taken a different approach to deals than traditional TV networks.
Now that those services have expanded globally, they’re changing things around the world, too—including how TV shows are financed.
How Hollywood Plans to Beat Netflix (NFLX)
In an age of immediacy, where entertainment options are vast and easily accessible, having to wait several months to watch the most recent blockbuster film in the comfort of your home is just silly. Apparently, Hollywood film studios finally agree. Netflix Inc. (NFLX), no doubt, has had something to do with this development.
According to the Wall Street Journal, major film studios from Warner Bros. to Twenty-First Century Fox Inc (FOXA) are getting set to start releasing movies for home viewing less than 45 days after their debut in theaters.
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On the Tape Today | 3-30-17
BABA | Alibaba Group showing relative strength on an otherwise slow day in the stock market. A clean breakout and strong close offers another swing trade to be long. Game planning a $110 buy-stop and a stop loss on a close below $108. Looking for an initial $110 target.
FSLR | First Solar broke $29 and holds a solid five days on light volume. Game planning a $27.75 sell-stop with an initial target to cover at $24.25. Stop loss on a close above $28.50. If the stock market turns lower the plan to look for an aggressive cover in the $20.50 area.
Tape Reading the SPY ETF
$SPY dropped a measly 55 million shares yesterday, and stopped at the $236 resistance we mentioned yesterday.
From a technical perspective, the stock market should turn lower for the next few days, thus forming another lower high. The March 15th high is what we call a “failed test.”
Buyers stepped back in and couldn’t produce enough new order flow to sustain the move. The $236 level was the confirmation of the break in bullish order flow. These aren’t “technical patterns…” You must learn them as tape reading principles.
This is the very reason we say “order flow” and not trend. To master trading, you must see buying and selling. Commitments made with real money and how those commitments unfold on the charts. From these commitments come your IF-THEN scenarios.
You think “OK, who is in charge of order flow, buyers or sellers? How obvious is it? How long have they made commitments?
“OK, what should happen next? How was the volume during these moves in price action? Remember the volume, both day-to-day and over time, tell you the commitment.
Was volume heavy, was it light? WHERE did the volume occur?
These concepts are the essence of tape reading. It’s not about patterns. Successful trading is about putting these pieces together, then developing scenarios.
Sometimes they work perfectly. Sometimes they don’t.
But here is the key, when you learn to read the tape, you are 100% in control, and it doesn’t matter what happens, because you developed your scenarios.
Once you understand how to read the tape, to interpret these big commitments, everything changes. Trading isn’t about flags, pennants and patterns, You begin to see beyond the patterns for money committed to an idea.
Let that sink in, if you’re having a hard time earning money, now you know why.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 3-30-17 | Thursday Edition
Bullish Momentum: APA, OKE, MPC, DLTR, EQT, BIIV
Long-Term Order Flow
Bullish Order Flow: RH, AMZN, BIIV, WDC, BABA, NFLX, ADBE, FB, AMT, TIF,
Bearish Order Flow: dg, mnk, alxn, lb, panw, slb, esrx, prgo, fslr, CTXS, HCA
2X Normal Volume: RH, CFG
Inside Days: bac, ge, intc, jpm, wfc, ko, jblu, aal, schw, met, v, luv, qcom, low, dow, dis, tsla, nem, csx, ual, bbt, kate, cvs, ibm, lvs, yum, pep, nwl, aa, mchp, utx, ma, ea
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