Going forward I continue to look for only the strongest stocks. One of my favorite long ideas is Netflix, Inc. (NFLX). The daily chart of NFLX has a cup and handle pattern forming, but I am more interested in the fast money trade through 52 week highs. A break of the $240 level today with volume was my trigger to get in for a move back $248.88 (52 week highs) and then $250.
I am looking for continued strength in NFLX up until earnings which are out on Monday, April 25th, but will be flat going into earnings. NFLX has a 20% short float which gives me more conviction on a potential squeeze before earnings. Netflix provides online movie rental subscription services in the United States and has recently begun its expansion into Canada, which should be a good growth catalyst to propel earning per share higher. Scott has also mentione NFLX long over the past few days and I just wanted to lay out my thoughts on the trade as well as it is my favorite set up on the board this morning.
*DISCLOSURE: Long NFLX
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