Monday, March 28, 2011

Netflix, Inc. (NFLX)

I first blogged about Netflix almost three weeks ago, back on March 9th. That day it closed at $192.99, which was not far from its $180.33 stop, but well below its Valentine's Day high of $247.55. I thought we might see a short signal before the week was out. But we didn't.

So how has the stock traded since then? 



1. SHORT the week of 8.2.04 at $16.91 with a $30.66 stop. Traded as low as $8.91 the week of 3.21.05, but with relatively low volatility it didn't have to move up very far to trigger my $12.50 stop the week of 5.9.05. Gain of 15.6%

2. Reversed to LONG the week of 5.9.05 at $14.28 with a stop at $9.96. Traded all the way up to $33.12 the week of 4.24.06, but stalled and steadily traded back down past my $24.78 stop the week of 7.10.06. Gain of 69.4%

3. Reversed to SHORT the week of 7.10.06 at $24.19 with a $30.59 stop. Traded as low as $18.12 the week of 8.21.06, then quickly shot back up and through my $23.93 stop the week of 10.23.06. Loss of -14.1%

4. Reversed to LONG the week of 10.23.06 at $27.59 with my stop at $20.53. Traded up a little bit to $30 in the last week of November, then sideways in a narrow $27-30 range before finally moving down past my $23.72 stop the week of 1.8.07. Loss of -17.7%
  
5. Reversed to SHORT the week of 1.8.07 at $22.71 with a $28.57 stop. Traded as low as $15.62 the week of 7.23.07, but the stock was obviously (in hindsight) not in any kind of trending mode, and it eventually drifted above my $21.80 stop the week of 10.1.07. Gain of 3.1%

6. Reversed to LONG the week of 10.1.07 at $22.00 with a $16.82 stop. Traded as high as $40.90 the week of 4.14.08, then dipped just low enough to trip my $28.34 stop the week of 6.23.08. Gain of 21.5%

7. Reversed to SHORT the week of 6.23.08 at $26.74 with my stop set at $37.73. Traded in a tight range around $30 through September before dropping down to $17.90 the week of 10.27.08, then immediately reversed course and blew through my $29.84 stop the week of 12.29.08. Loss of -11.7%

8. Reversed to LONG the week of 12.29.08 at $29.87 with a $19.25 stop. Traded as high as $247.55 the week of 2.14.11, but cooled off in early March, briefly dropping below $190. Last week it rebounded back to $230.01, and so far it's moving higher again today. The stop, due to the increased volatility, has actually dropped back a little to $174.89. Gain of 670.0%

Scorecard:
Winning Trades: 5 | 62.5% | $43.63/share avg.
Losing Trades: 3 | 37.5% | -$3.80/share avg.
Average Trade: Gain of 92.0% | $25.84/share

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