NFLX is in distribution: bounces get sold into resistance, it keeps rolling over, and the chart looks bad, with a possible drop to the 6665 area. The selloff on the content-leadership change may be overdone; if it holds 70 or squeezes, a bounce could target $72.50, but the net read is that strength should be sold.

Netflix, there's news their content strategist I think is stepping down. So that's down a couple points. Certainly going to be in play.

Oh, what are they saying about Netflix? One sec. I just want to hear what they're saying about Netflix real quick. Netflix down over 3% on the news. Chief Content Officer Bella Bajaria to be replaced by entertainment executive Peter Rice.

I mean just came out. Yeah. So test Netflix is definitely in the news today for sure. Um it's going to be one of the ones we watch.

Netflix trading even lower. Is that the stock they trade? I don't know. Is Netflix the stock we trade today? Is it a candidate for a rebound? Does seem like it's being a little overdone though.

like I think like Netflix could be interesting today um on down on news of a creative director change.

Yeah. So, you know, that is or I guess they're changing the rudder on the ship. Uh moving the new guy or gal. Is it a guy? They put a new guy in place. switch from a lady to a man. Down on the news.

You know, this a pretty this a pretty fair support zone, but people are very negative on Netflix and I have to say I do not know what the books look like. I really have no idea.

It's still in distribution every single bounce. When see this line, if you don't follow accumulation distribution, it's a great thing to put on your chart because it tells you what big flow is doing.

And so if you're under the zero line, your big bounces are going to get sells. Your bounces away from your uh moving averages that are a little bit slower. They're they're going to move up into resistance and they're going to sell.

And you're seeing that very actively here in Netflix. And it's just continues to roll over and roll over. And so even if it does bounce, there's another selling zone waiting for it.

Are the traders going to try and bounce? We'll take a look here. All the way into where was this? The beginning of the month in October, the resistance area was 69 and it held at 69 on October the 11th and then on October the 14th.

Could it hold here again? Potentially. Yes, absolutely. They'll try to bounce. This chart is this really looks bad. I mean, this chart's sick. And so I It looks like they're going to try and base, but you know, could we see this 6665 area before it's all over? Potentially. Quite potentially.

We we went over TLT, we went over Netflix, we went over we discussed Balanteer, um we have Coree, I think is important, but what what are you going to be watching on the open?

Let's Let's take a look at how Netflix is doing off of this edge. >> Oh, wow. Netflix was the move. Netflix uh Netflix went straight up on the news quick dollar change. Yeah, that would have been a better one to trade.

>> Yeah, it's still going to sell off though. Remember this is the one where we're looking at I said hey we got this 70 line but up above this 71 zone this dark pink area is the candlestick formation of the prior opening day.

And so moving into that zone under negative um under distribution tells us, hey, listen, we're we're going to see some selling here. So, what you want to look for is the failure to hold higher off of this initial bounce.

So, you're looking for it. Here it is entering in to yesterday's space. If you say to yourself, hey, I I want to buy it. You can see that they're buying it right now. That accumulation line is straight up and the momentum is moving.

A trend is always master and commander always. So this easily a squeeze that says, hey, I'm getting I'm getting out of here if I was short. So if you didn't catch the initial move, just wait. see how it looks up here near 72ish and go from there.

But in in my mind, this price action has got selling at the top of it >> for Netflix.

>> Setting them up to be slaughtered. >> Yeah. Well, I mean, it could be shorts covering, right? But it's it's got it's got the location tells us that this move overall is in distribution.

So if this move up is probably short covering. Now if they're very short, it could continue to rise. And so that's why you don't go, "Hey, I'm just going to sell this right now cuz I think it's going to roll over."

No, you wait for it to tell you it's got no energy left to move. and then you take the trade but not before. So if it comes back and holds 70, it could have some upward flow but at this juncture my suspicion is you know this upward patch should rotate back down.

And so if you're looking for a a zero DTE taking that 70 put which is you know that's that's probably got a delta about 40 at this juncture that's that's not a that's not a bad thought if you're going to go in quickly and come out quickly.

Netflix, it only had that one good move and you said you thought they were it was an ambush and it was coming down.

Netflix remains interesting. What do you think about Netflix? You think this Do you think this ends up reversing on the news? Well, um, you know, it's still in the opening candle formation, so you just have to

I'm going to buy I'm going to buy some of the Netflix 72 calls. I just took them for 16 cents 16 cents because risking 16 cents. So when you ask me what my stop is, 16 cents that's the most I could lose, right?

risking 16 cents. So when you ask me what my stop is, 16 cents that's the most I could lose, right? And it's more of like what has shown me kind of resilience and and you know they formed an opinion on change the content leadership.

Maybe people think like no this is fine and they turn it into a good thing and you see Netflix end up a dollar a day.

Yeah. So, could Netflix go is there an argument to be made that Netflix could be $2 higher today? Yeah. Yeah, there's Well, I mean, there's always an argument um for that sort of thing. The question is um is it valid?

I mean, we can we can argue those sorts of things. Well, I think I think the thing is the reason I'm saying that is because if you're saying it's down on the change in leadership, then that's such subject to the position of who the leader is.

So, it's kind of like an emotional an emotional response.

I believe that's what this is, right? So, maybe like so the idea that they're like, you know what, no, this is fine. Yeah, that makes sense. We get a run up, so I buy some cheap options and if we want to go up a dollar, then that would be fine.

Yeah. Yeah. And you know there's not a lot of volume here moving these guys on this leadership event. It's that closing there. The cattle formation at the 400 p.m. region way more volume than the 9:30 open.

And so that's all the way up here that they sold from that space and then it just went straight down. So, if it is going to move up, that candle close is going to be that number.

And that's $72.50. That is a great target for you to look at from that.

By the way, at that point, your options would be up 6x. Absolut. Well, not 16 cents to 70 cents. Oh, okay. I thought you said 72, not 7250.

Uh, no. I bought the 72 calls but at 7250 those options were.7 cents off the Yeah, absolutely. Yeah, it will be a beast. So that would be the target zone. That's really how I look for targets.

And then the Netflix, you know, the idea of it was good um for some cheap calls, but it they stop becoming cheap when you buy too many.