The NFLX Active Short Trade, which was triggered on a break below the uptrend line on Dec 27th, is indicated to gap higher today following its earnings announcement. Although the stock is poised for a very large gap, Netflix is currently trading only 3% above the entry price in premarket trading and will remain an Active Trade with an update and suggested stop level to follow later today. I continue to remain bearish on NFLX from both a fundamental & technical perspective and personally will be adding to my position on the gap today with a stop on that lot set slightly above the post-opening (around 10am ET) highs. Again, an update to the trade will be made to the trade one the dust settles on today’s earnings induced gap.
Regarding the broad market, both AAPL & XOM are indicated to open lower today as well as the SPY, which is currently indicated to gap down to the uptrend line recently posted on the 2-hour chart. Any solid intraday break or close below that trendline today will likely lead to additional downside in the broad markets.