Monday, April 13, 2009

Netflix-need to hold em

I'm beyond kicking myself on this one but man did I have Netflix correct. I'd said here to buy when above 40.9, then had it at 41.63. This am I see it approaching 49, a 17% move in less than a month. But I am far from perfect and sold this one when I elt myself get chased out. Sometimes fear really screws with you, forces your hand. I forget how firm of a stop loss on this, but it was a mental one.

I'd like to ask myself WWDD? What would Darvas do? He would have been away from the market, ignoring intraday price action, might have even had this one on margin. I suspect he would watch this one for a pullback to $45 or even the 50 day average. For now it really looks like a great winner of the future. Installed on LG tvs and now video games. Increasing stock of bluray also.

NFLX lesson is helping me to hold onto another leading stock that is a little more sluggish, not as much in the public eye, but showing great fundamentals and price action-constructive pullback now.

Happy trading!

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