Here’s your trade on Netflix ($NFLX) – January 3, 2023

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The market didn’t get off to a very good start but I think a year from now we are going to be looking back over the past year, in other words, 2023, and say that this was a lot better than 2022. That is just my sense of things, it should be choppy, my bet is, for at least a quarter, maybe even into the second quarter, but ultimately I think everything is going to work itself out and we are going to actually have a pretty good year.

With that said, I want to talk a little bit about Netflix ( NASDAQ: NFLX ) here today in this Free Chart Video. I didn’t watch the Harry and Megan Show or as I say, the Harry and Megan Markle show. It’s not my deal, there are very few people that I am less interested in than Harry Markle and his wife Megan, but the deal did well.

Apparently, they have got other things coming up from the dynamic duo and I think that is all well and good. But I don’t really think that that is what is moving the stock, the stock has been going up for a while. I think that this is more a case of why aren’t people going to movies. Maybe it’s because you’ve got to pay $12.00 for a big old bucket of popcorn. Then you have to exercise some sense of discipline to keep from eating the whole thing before the movie actually starts. At least that has always been my challenge. But I think there is more to it than that.

I think that these days, and it’s been going more and more for quite a while, your AV system at home is awesome. It really doesn’t take that much money to put a nice 65 or 72-inch-high-definition TV on the wall. And a big sound system doesn’t cost that much either. And so with COVID, during all this time when people were sitting around afraid to go outside, what are they doing? They are sitting at home watching TV. They are upgrading their sound system, and audio system, their video system. They are upgrading all this, and maybe they’re buying more furniture.

The bottom line is, the pandemic, Fauci, has turned us into a bunch of couch potatoes and we are all watching TV at home. That’s the way this goes. And so the movies, they are releasing them earlier and earlier so you can watch them at home. This is all good for Netflix ( NASDAQ: NFLX ). Netflix ( NASDAQ: NFLX ) had a really, really brutal 2022. But that brutality ended early and now this thing is up, it was almost a double at one point. It was a double from the May low.

I think this is a stock that is likely to continue moving higher. You can see here on the weekly chart, this channel is definitely intact. They report earnings in a couple of weeks, on the 19th, so you have to be careful about that. I think that’s a Thursday, my birthday is on the 20th.

What I would suggest doing on this is, I think you could even start to build a position here, right here at the 50-day moving average. Your downside is about 7 percent, that would be this low here. You start to build a position and then just let the trend work. Let the trend work for you. This isn’t the perfect setup but I think it is a setup that works.

That’s what I would do. I think that 300.00 is kind of a line in the sand here, so to speak, just because it’s an even number, 300.00. So it doesn’t surprise me that the stock banged its head up against that level today. If it pulls back and gives you a little entry down here around 290.00ish, that would be a better way to go, if it happens.

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