Among the institutionally controlled ‘lunatic stocks’, NFLX is one of the few left that can be manipulated higher and higher with little fear of earnings surprises. Now that Chipotle’s effortless and carefree uptrend has been compromised by unpredictable problems in the food chain, DaBoyz will have more firepower to train on this stock, along with the several other levitators they depend on for their livelihood and year-end bonuses: MSFT, FB and AMZN. If NFLX completes the pattern shown, the implied rally to 156.33 would represent a 23 percent gain. If it gets there by New Year’s Eve, that would be quite a feat, even for this stock. It has not yet signaled a ‘mechanical’ buy at the midpoint pivot, 120.92, but if and when it does, a bid there would require a 107.91 stop-loss tied to a 156.33 objective. We’ll look to cut the initial risk down to a theoretical $1 or less per share by using the ‘camouflage’ entry technique, so stay tuned to the chat room if you’re interested. _______ UPDATE (December 10, 5:30 p.m. EST): The stock has gotten within 18 cents of the 120.92 Hidden Pivot (see above) where I’d suggest a ‘mechanical’ bid. If it’s touched and you use it, the initial stop-loss should be set at 107.91. ‘Camouflage’ can also be employed to cut the theoreetical risk by as much as 95%, although this would be a more labor-intensive approach. Another approach would be to leverage the ‘mechanical’ entry signal using options. I’d suggest sticking with near-the-money calls expiring in four weeks or less. Please let me know in the chat room if you fill the order so that I can establish a tracking position for your further guidance._______ UPDATE (December 14, 10:15 p.m.): The stock took a strong bounce off a 114.66 low that lay well below my 116.61 target. If you got long and stuck it out, please let me know in the chat room and I’ll establish a tracking position for your further guidance. For now, 122.70 can be used as a price objective for this upward correction.
