Flash Update – July 19 2018

Published on: July 19th, 2018

Julian has a few thoughts on Netflix and the FAANG in general… Published July 19, 2018.

Comments

AM

Alonso M.

19 July 2018 @ 21:31

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If your timing is prescient, this is worth the price of admission.
LS

L S.

19 July 2018 @ 21:39

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Julian, thx for the update. Rereading your piece Blowing Bubbles, Jun 17 do you prefer to trade these crash patterns via a bounce, after the initial 40% correction down (thus providing upside target at the already established neckline and also providing the setup up for the 2nd downward correction) as opposed to trading the initial downward 40% correction? Appreciate your broader point about structural disintegration of market components and possible weakening of market leaders. The difference between broader market commentary and specific trading opportunities speaks to my own questions about the role/intent of MI. Perhaps this difference is a function of market conditions, seemingly changing, and my question will be of more relevance as things start to move. Have enjoyed and learnt from MI this last year and look forward to the next.
- JB
  
  Julian B. | Contributor
  
  20 July 2018 @ 15:31
  
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  Hi LS...From a trading perspective getting the initial i.e. 40% drop right is really luck. Yes, once we drop below the neckline you can have a stab at a short but you MUST set a close stop. I've seen too many false dawns, where the stock reverses and shoots higher. In that sense waiting for the failed bull trap bounce is far safer. Bigger picture the real aim of this piece wasn't to say "sell Netflix" but to provide a heads up. If Netflix does drop hard, the risks is that the other FAANGS could go too and with them the broader market. So even if you don't own Netflix and wouldn't ever consider selling it, you should have it on your radar.
MT

Mister T.

20 July 2018 @ 12:52

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Yes. Well written.
- LS
  
  L S.
  
  21 July 2018 @ 07:44
  
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  That’s great, thx Julian