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Netflix Earnings – Chart Wednesday $NFLX, $AAPL, $IBM

stock-marketWith great promise of change we entered into Wednesday’s arena to trade.  To our great disappointment there were far too many empty seats.  Volumes were paltry across the board on Wednesday.  It is anybody’s guess as to why.  The outcome resulted in very limited trading under thin conditions.  Netflix and eBay reported earnings on Wednesday.  It was a ‘barn burner’ for both with EBAY succumbing to gravity and reigning in the willing buyers above $60. 

In NFLX the computers were willing to push and to maintain $390.  Initially the stock jumped $20 to $354 before diving $34 to $320 and then recovering to $350 – oh that was in the first minute after the earnings were released.  It was during the next 4 minutes that the shorts got their hearts ripped out as the stock continued higher reaching $390 – it was a 40 point tear higher as if there was no probability of ever seeing $350 or $375 again.  The offers fled to higher ground, which didn’t seem high enough until $395 capped it – for today anyway.  I wouldn’t have thought from the close at $333 that $390 would end up being support by the end of the day.  

I wonder if Reed Hastings will again warn traders about their exuberance or better yet sell his stock to them borrow Sergei’s 757 and fly over to Hawaii and buy half of Lanai from Larry.  Then I think you can retire happy and fulfilled, well-done sir.

Wednesday’s chart is of course NFLX.

1-22-2014 4-45-11 PM_NFLX+EARNINGS 

Check out charts from Tuesday’s sessions for the detail on the Eagle’s quick eye catching the moves in NFLX, IBM, and AAPL.

1-21-2014 4-22-09 PM_AAPL 

 1-21-2014 3-57-32 PM_IBM 

 1-21-2014 3-05-31 PM_NFLX

Join me Monday thru Friday from 9:30 AM to 10:30 AM EST as I continue to review trading equities using DTS.  The room is open to all and is a great place to review how the DTS birds are easy to use and will make consistent trading profits. 

The good news is that the current atmosphere remains prime for day trading.  And while the $264 billion trade remains elusive there are solid opportunities to trade profitably.  I expect there will be numerous opportunities from a growing list for both traders who approach the market from a bullish prospective as well as traders who approach the market from a bearish prospective.  

Remember the key is being able to reduce and separate the “noise” from opportunity.  This takes knowing and executing a well-defined strategy and allows you to see opportunities amongst the “chaos” and by trusting the mechanics of your strategy, be able to take advantage of them. 

The trading opportunities should remain abundant within equities, futures, ETFs, options, treasuries, and precious metals.  Opportunity continues to knock on our doors.  While it doesn’t come without risk, risk can be defined and more manageable.  Volatility and broad moves are exactly what a day trader desires and being able to respond without questioning is a luxury many are unaware of. 

Using the Hawk Micro Scalper, Falcon Swing Trader, and the Eagle Trend Trader within the various markets can produce strong results.  The combination of any of the “birds”, the Hawk, Falcon, or Eagle platforms with Trade Manager provides a solid, more stress free way to building profitable trades. 

 Indicator Warehouse

Indicator Warehouse has in my opinion the best platforms available covering a wide range of traders from novice to expert.

The Diversified Trading System from Indicator Warehouse offers cost effective products that allow a trader to enter into the “chaos” and trade more effectively.  

Trade Manager from Indicator Warehouse automatically calculates the correct amount of contracts or shares based on your account size or market volatility.  Automated stop-loss management and position sizing eliminates most of the problems most individual traders have.  Day trading and position trading both require (actually demand) good risk management.  Trade Manager does the job across the board and is an essential trading tool that ensures that you take the maximum profit from all your trades. 

Profit Finder – System Back Tester.   When implemented it allows the user to:

  • Immediately know the impact of parameter changes. 
  • Automatically reads all of your DTS entries and exits
  • Calculates the profit/loss of each trade
  • Performs a wide number of essential intelligence boosting calculations instantly
  • Provides solid details about the effectiveness of your trading strategy/ methodology/ indicators

My point on money rotation and sector rotation is similar to that on parabolic moves that they happen with frequency within many time frames.  As traders these types of moves can be a bonus for day trading or position trading so again don’t get caught up in the “what’s the catch.”    Realizing a rotation is occurring within a stock you trade or a sector is a great source of stocks to plug into the Diversified Trading System.  Allowing DTS to cleanly and beautifully capture the moves though any or all three DTS trading platforms.  Our goal remains to assist traders to make greater profits during all types of markets.  Sector and money rotation is another tool.

The Diversified Trading System used together with Trade Manager should continue to produce numerous trading signals in the DJIA, YM (mini), S&P 500, ES (mini), RUT, TF (Russell 2000 mini), AAPL, AMZN, GOOG, NFLX, and LNKD, GS, and Tesla Motors (TSLA).    In the near future I will be adding options strategies to the trading list. 

Here is a list of the markets where I have found that DTS (all three birds) are producing numerous signals.  Continue to bear in mind that there are days when trading opportunities are not as plentiful.  These are days when not trading is likely more profitable than attempting to “force” a trade”:

 

  • DJIA future (e-mini available) – highly recommended for experienced traders
  • S&P-500 future (e-mini available) – highly recommended large intraday moves. The SPY options are a valuable alternative to the future.
  • Russell 2000 future (e-mini available) – highly recommended can lead in either direction.
  • NASDAQ 100 future (e-mini available) very highly recommended and dominated by AAPL, AMZN, NFLX, GOOG, and TSLA – will likely continue to have higher percentage moves as the next larger degree decline begins in the NASDAQ first.
  • GS (Goldman Sachs) – good two way volume – usually has $3+ intraday range – Options available
  • AAPL (Apple Computer) – highly recommended – Options trading as well
  • GOOG (Google) – highly recommended – larger accounts needed – options traded
  • LNKD (LinkedIn) – solid intraday range and has picked up recently Options traded
  • NFLX (Netflix) – solid intraday range – volatility has deflated on the rise back to $300 – Options traded and very liquid
  • TSLA (Tesla Motors) – highly recommended  – patience is required if you trade the options – trading the stock remains solid
  • TWTR (Twitter) – both stock and options strategies available.
  • 30-yr Treasury Bond future – highly recommended
  • 10-yr Treasury Note future – solid two way trade
  • TLT (Treasury Bond Long ETF) – very active – options as well
  • TBT (Treasury Bond Short ETF) – very active (moves inversely to TLT) – options as well
  • Gold (futures and ETF – GLD) very active – not suitable for all traders
  • Silver (futures and ETF – SLV) – very active – not suitable for all traders
  • GDX (Gold Miners ETF) – lower priced – suitable for all traders
  • ABX (Barrick Gold) – Large rally potential – capable of sizeable intraday moves.
  • NEM (Newmont Mining) superb volatility produces opportunity laden intraday moves.
  • EURO FX (futures, mini and micro contracts available) very active suitable for all account sizes – Highly recommended
  • Natural Gas (futures) – can be active and volatile
  • VIX Index (futures) – not suitable for all traders, more experienced traders should find a growing two-way trade.

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  1. Mike, absolutely love your blog, your explanations, and the annotations on the charts. I am an owner of the Eagle, and therefore this HITS HOME for me. Keep up the great work as well as you ‘current’ free trading room.

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Commodity Futures Trading Commission: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

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