Thursday, April 22, 2010

Netflix: Parabolic Chart

Netlix (NFLX) just reported quarterly earnings yesterday and the are GRRREAT! What is not great is a pure technical perspective. The chart is absolutely parabolic and parabolic chart is always a bubble. I have a long position in NFLX, sold a little bit at 75 and now feel stupid looking at price above 100. How long can it continue? I am not complaining, remaining part of my position is growing at breaknecking pace. The question is: how long can you ride this tiger?
I'm holding my position for now. Maybe overbought condition can be worked out as a function of time... I doubt it though. The main question is: when to take more profits?

Full disclosure: at the time of publication author had a long position in NFLX. Positions can change any time.

Seeking Alpha Certified

No comments: