NFLX puts or short for Monday

For the past couple of weeks I have been trying to implement a plan to trade options utilizing information from Darcy2 and Rookie30 on the short charts. I am impressed with the success of each and will continue to pick their brains in hopes of one day being able to match their skills.

In the meantime, I would like to offer a possible trade based on the daily chart. I believe that NFLX will play well to the downside tomorrow and RTT states that it's 1 week trend is DOWN 9 of the last 11 years

I also believe that NFLX could decline significantly over the next month.

I have been trading UA. I am a sports guy, so I am a little familiar with some of the shoe companies. Last week UA moved well in my direction. My trades weighed heavily on the ADX showing strength (going up), but candles going down. Take a look at the 55. Yes, I rode the ADX on Thurs. got out and rode again on Friday.

If that ADX is up and my trade is on the same side of the broad market, I am usually going in the trade on UA for a short play. Take a look at the ADX (13 chart) on UA. When you find the ADX going up, in direction of the market, and the with or without the E, you will see the few times a trade is missed. Take a look at the 55 with the E. Again, this is how I start my foundation for finding good trades for the next day. This is how I know what I could possibly trade. The 13 just fell below the 8 MA again on the UA, so if things shape up tomorrow, this could be a quick trade for me. Got excellent strength from the 55.

When trading NFLX (for now at least) look for support and resistance on the daily. Right now NFLX on the daily has hit strong support at 251.76. Just my opinion.

Addendum: This just a "daily" read.



Edited 2 time(s). Last edit at 08/19/2013 11:59AM by Darcy2.