Short NFLX? Yes-at $435.50 today. We know valuation logic doesn't apply to certain internet companies today (Twitter, LinkedIn, Facebook, Netflix, etc..): however, Netflix seems the most ripe for a fall. We just don't get it -they are like a virtual "Blockbuster Video" from back in the day. No barriers to entry, still dependent on mailing DVDs for a large chunk of profit, and an extremely price sensitive customer. We saw what happened to the last time they raised prices...Good Grief!
1. Nobody recommends shorting it anymore- they all got crushed a 100 points ago.
2. Our computer program picked up a "head and shoulders within a double-top formation".
3. It has a well-defined small stop-loss point with huge upside potential.
4.The risk/reward is off the charts.
5. It's shares are 90% owned by institutions at a much lower price. Who's left to buy and who will be left holding the bag? Carl jumped out a lot lower...We are following him. Are you?
We like our odds.
