Complexion Change in Netflix (NFLX)

Fundamental analysts love to bash Netflix, Inc. (NFLX), and traders love to short it, but despite all the naysayers, both company and stock performance have been a big success story over the past year. Most recently talk from Facebook’s Mark Zuckerberg about increasing partnership with Netflix and others triggered the latest short squeeze in the stock.

While Netflix has showed relative strength and continued to squeeze, short term I see a potent Technical Outside Day developing. It traded through Friday’s high and then came off hard below it. I call this the RedDog Reversal.

The next level to watch is $263-$264, then $255. For these bears to have any pressure here, it needs to stay below $273.50. Perhaps a spot to look short if you missed the first entry.

(click to enlarge)

Disclosure: Short NFLX

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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