NFLX is yet one more institutional favorite whose chart since the August sell-off is beginning to look more like a bullish consolidation than a bearish distribution. Most immediately, the pattern shown looks promising for bottom-fishing at the 103.96 ‘secondary pivot’ (see inset). Using stock or options, you can try to acquire with the shares trading within a nickel of the target. A stop-loss as tight as 103.89 could be used. If you employ call options (or well puts short) to initiate this trade, be careful not to give up even small change getting in and out of the position, since even a small edge is going to be hard to come by. _______ UPDATE (10:15 p.m. ET): The stock gave up little ground Wednesday and even tripped a ‘buy’ signal at 108.35. The chart shows three levels — x, p and p2 — where traders could attempt to get long using a ‘mechanical’ bid. If you’re not familiar with the technique, I’d suggest spectating from the chat room. _______ UPDATE (October 8, 8:58 p.m.): Thursday’s headless-chicken histrionics were best avoided by all but the nimblest traders, but they left no doubt as to the bullish intentions of this stock’s sponsors.
