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While I was down in the Bahamas over the last couple of market days, my pride and joy, Netflix (NFLX), breached $100.
I have to admit this move was somewhat surprising given that I felt they needed to drastically improve their streaming service, yet the stock keeps on ticking, which makes possible tops of this stock somewhat scary.
For those of you, who have been following this blog for a while, you’ll remember that this Netflix-pick started all by simply trying to find a stock that would prosper in what was then the start of the market crash.
Fast forward a year and a half later and that pick has seen a healthy 470% return.
Not bad, right? See all my analysis of Netflix.
It seems like almost every other week different analysts are picking some other company to swoop in to take away marketshare from Netflix, yet, despite all the video sites, only Netflix seems to have figured out how to actually successfully make some money out of this model.
Honestly, there is no reason I need to sit here and sell you on all the positives of Netflix. It meshes online demand with physical demand for DVDs and is integrated with almost any third party electronic entertainment sources (i.e. Xbox, iPad, and selected TVs).
Current analysis – Technical factors will tell you this stock is drastically overbought right now. If you have no position (what were you waiting for?) then now would be a risky time to get in. With Netflix hitting all-time high prices, there are no set areas of resistance in place. The closest level of real support is $100.
Learn what I look for in stocks and how I trade them.