TRADING TIPS

NFLX Bracket Trade

Hubert Senters here. Let’s take a look at Netflix. Obviously it is moving down after hours because it came out to earnings. And people didn’t like them. This is going to set-up a really good bracket trend.The hard thing to do is leave it alone for tomorrow. Right now in after hour it’s trading $473. I’ve got the line at $472. The reason you can’t see it because I’ve got this on a daily chart. Once it closes. It closes. If you put it in a different type of chart like 15 minute. And then if I set my settings to Pre & Post Market you’d be able to see that it is now trading down there at $474. Here’s the plan for tomorrow. On Netflix don’t touch it. Just let it trade.  And once Friday closes because number one you don’t want to hold anything over the weekend whether you believe Netflix is going higher or you believe in Netflix going lower. You don’t want to suffer through the entire weekend. There’s a tons of stuff that can happen. And you can get a gap up in the opposite direction that you want in Monday so I’m trying to protect you first. For tomorrow watch it trade and then when the market closes tomorrow mark the high and the low on Netflix on its daily range. And then you’ll place a trade on Monday. So in this case scenario let’s say that this was that range. Let’s say this big red bar. What you do is you’d say oh, the high for that would be around $575 and then the low would be $520. If today it was the range that it gap up or down then we will just bracket that and go $536, $505. Tomorrow let it trade. You can watch it. For me, I will leave it alone let it trade tomorrow and let out fear and greed and pin up frustrations just kind of multiply. And then trade it on Monday. Hubert.

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