10/9 Tuesday
-This can be quick and easy 1-2 days trade set up.
-We got a Island Reversal pattern at resistance from the gaped area from 7/05. (Yesterday it gaped up, hit the resistance, and it gaped down)
-My trigger is just little below of Friday’s lower wick so tomorrow if it trades below that area, I will get triggered in bearish positions (put options).
-Also good volume today to support this move.
*Target = $58-$59 (gap support from 10/3)
*Here is one small concern I have = 100 SMA.
Recently it has been served as pretty solid pivot areas as you can see the arrows. $NFLX completely disrespected 100 SMA last Thrusday by pushing through it in the middle of the bullish move so I wouldn’t put lot of weight to it but something to be noted of.
If or when 100SMA act as support tomorrow, we can trade back up and fill that gap. And if that happens, my hope is that it doesn’t take me with it.
10/11 Thursday
– Resting before breaking bearish..?
-What a nice trigger point though right? Last two days, I never got in bearish yet as it is resting before continuing bearish. Very good bearish entry in my opinion.
I actually like it this way better than if yesterday we had big bearish candle because if we had huge bearish candle yesterday we might have a resting pattern today. And also when we rest 2-3 days like this, the drop is that much harder and faster so maybe I can get triggered in this tomorrow morning and possibly get out tomorrow afternoon or early Monday morning.
-If you look at your SMA. 100SMA has been holding this thing as I have expected on my previous update. That was the reason why I put my trigger just below that area instead of jumping in on Tuesday afternoon. I rarely jump into a trade during the day because I want to put up some strategic planning after hours. I did jump into $AAPL trade this morning after seeing bearish flag and $650 rejecting the bulls. That thing tanked today.
I think possibly we might see similar story here on $NFLX tomorrow.
10/12 Friday – Entered Bearish @ $64.33
Target is at around $58 (just above that gap support)
10/16 Tuesday – 100SMA is Interfering
Well looks like we might be heading back up to that gap resistance and with earnings coming up soon I am not going to wait around.
My bearish trade stop is just above that wick 10/12 candle’s upper wick so I may get stopped out tomorrow.
10/17 Wednesday
– Stopped Out of my Bearish Position at Open
Got stopped out this morning at open with a little bit of loss.
Here is the lesson of my bad trade.
I should’ve waited until it closed below 100SMA and then put my bearish trigger just below that closed candle. That would’ve been more awesome bearish trigger.
Well lesson learned.
