Netflix Inc NFLX Earnings Report Seeks Bearish Reversal

Netflix Inc NFLX Stock Chart Before Earnings 10.16.19

Netflix Inc NFLX Stock Chart Before Earnings 10.16.19

Yesterday was a day trader's market.

We saw text book open range breakouts and incredible follow through. Yesterday's coaching calls focused on "holding the winners." My answer was an emphatic NO.

This one area of trading seems to mess up most traders. How to assess profit potential makes the difference between years of average results and years of happy returns.

You must learn when to book profits and when to scale your winners. Yes, yesterday was awesome, but major resistance remains just ahead. This reduces the profit potential. Which diminishes the argument for accepting risk.

If you're a member of our Order Flow Coaching Program, you know I am big on "building an argument." I teach you to make a case for accepting risk.

We ask the all-important question, "Does the profit potential, justify accepting the risk?!" Then we go and find proof that it does or doesn't.

The better your tape reading skills, the better your trading. This business is NOT just about entries. That's the easy part. Making money happens before the trade because you know your trade expectation.

When you know your trade expectation (order flow + saturation points) you know exactly how you plan to manage the trade, if you make the trade at all.

Good trading is flawless execution. It's simple but not easy. That's why coaching is critical. 

Have a great day.

Pete

PS. Here's my scan for today of stocks that meet my minimum criteria and yesterday trade 1.5X their normal volume. A couple of interesting setups, see if you can find them.

Netflix Reports Earnings on Wednesday: 6 Important Things to Watch

Though it has bounced a little in recent weeks, Netflix (NFLX) is still down 21% from where it traded before the company posted a large Q2 subscriber miss in mid-July.

That likely spells lower investor expectations ahead of the streaming giant’s Q3 report, which arrives after the bell on Wednesday.

On average, analysts polled by FactSet expect Netflix to report Q3 revenue of $5.25 billion (up 35% annually) and GAAP EPS of $1.03. However, Netflix’s subscriber numbers tend to have a bigger impact on how its stock moves post-earnings.

thestreet.com/investing/netflix-earnings

Netflix has history on its side heading into earnings
marketwatch.com/netflix-earnings-history

3 things to watch for during Netflix’s Q3 earnings call
bizjournals.com/netflixs-q3-earnings

Bank of America is set to report third-quarter earnings — here’s what the Street expects

Will cost-cutting offset the drag from lower interest rates at Bank of America?

That’s the question faced by CEO Brian Moynihan. Bank of America, the second biggest U.S. lender after J.P. Morgan Chase, is the “most asset sensitive” among the big banks, meaning that changes in interest rates impact it the most, according to Morgan Stanley analyst Betsy Graseck.

cnbc.com/2019/10/16/bac-earnings

3 Dividend Stocks That Should Pay You the Rest of Your Life

Income investors try to protect against that risk by stacking their portfolios with companies that pay a large portion of their earnings each year in tangible — and growing — dividends.

This investment style has several other advantages, including its reliance on the power of dividend reinvestment and compounding returns to supercharge growth.

fool.com/investing/3-dividend-stocks

Why Apple’s Stock Is Soaring as Fellow FAANGs Languish
investopedia.com/why-apple-s-stock-is-soaring

Pete Renzulli
 

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