I was asked via PM why I had a short stance on NFLX given the fact that it has slaughtered almost everyone who has doubted its story and given the fact that it will be reporting earnings on Jul 18th.
From my own systems' standpoint; there wasn't a sell/short signal. So, in essence, I could slap myself later for going against my self imposed discipline later
On the why...
- Hit new high; top channel
- MACD appears to diverge
- anyone wanting a great example of creative presentation on financial statements show download their reports.
What caught my eye on this...
- My kids saw an ad for it last month; nagged me to join. For $8/mo and free for the first month, I figured...why not?
- After the first week, they started complaining about running out of shows to watch! So, I figured...this can't be; let me check it out myself! So i did! Lo and behold, I too was bored after a few evenings watching what they got! Content wasn't great; I ended up cancelling before the trial was over!
- So, it got me to ponder...at $8/mo...how the hell is this worth $15B?
What is the worse that can happen? With a stop at $315 ($10 Risk vs $60 Reward). It was too tempting for me to pass it up.
HOWEVER, I do realize the sentiment on this company need to change (from the current bullishness to bearish) regardless of how crazy the valuation is or how screwed up their financial reporting are for this trade to work out...
I could have waited for after earnings....but...
Guess we will see what cards we are dealt with...
