Judging from the ease with which NFLX pushed past the midpoint pivot shown, more progress to at least 488.55 seems assured. With $16 of potential upside from here, we could get long using a $5.30 trailing stop to mechanically manage dynamic risk. That would keep risk:reward in the 1:3 relationship that I always advise. However, the trade will have a better chance of succeeding if we initiate at a swing low coinciding with a midpoint pivot or D correction target. However, any such opportunities we might have looked for yesterday would have proven tricky, since corrective targets were not precisely hit (owing in some measure to the fact that none of the downtrending ABC patterns shown contained a valid impulse leg). If you’re more comfortable boarding with-the-trend (i.e., the uptrend), then camouflage is the best way to go, presumably using an entry signal on a chart of 5-minute degree or less.
