{"id":15288,"date":"2011-11-02T14:11:38","date_gmt":"2011-11-02T18:11:38","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=15288"},"modified":"2023-04-13T09:26:25","modified_gmt":"2023-04-13T13:26:25","slug":"why-i-was-long-nflx","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/why-i-was-long-nflx","title":{"rendered":"Why I Was Long NFLX"},"content":{"rendered":"<p>The other day I tweeted that I was long NFLX and short SPY and that it felt kind of \u201cweird\u201d. I wrote &#8220;weird&#8221; because the easy money trading NFLX had been on the short side for over a month and at the time the SPY was in a multi-week uptrend. As an intraday trader I often will take trades that are counter to daily and weekly trends.<\/p>\n<p>In the case of NFLX I got long when I spotted a buyer on the tape at 74.50 (see chart below). I consider three factors when making trading decisions: The Tape (order flow), Technicals (the price action that ensues from buyers\/sellers pushing a stock up and down), and Catalysts (fresh news that leads to short term institutional interest).<\/p>\n<p>These three factors receive different weightings for each trade that I make. For this particular trade the Tape was the primary reason I was long. The Technicals were still pretty awful at the time for a long trade. And the Catalyst was to the downside as well as NFLX had given worse earnings guidance than had been expected.<\/p>\n<p>Reading The Tape is a skill that requires hundreds of hours of direct observation of Level II quotes and time\/sales data. One of the \u201ctricks\u201d I recommend to newer traders is to use a \u201ctick\u201d chart to help confirm things they think they are observing on the tape. It is easier to spot the fingerprints of a buy or sell program on a tick chart because of the compressed time frame it highlights.<\/p>\n<p>There are no books or articles that can teach you how to read The Tape it must be done by direct observation. Gman did a phenomenal job a couple of years ago compiling a series of videos, quizzes, and exercises to help jump start a trader wishing to learn on how to effectively use the tape in their trading decisions. More info on the program can be found <a href=\"https:\/\/www.smbtraining.com\/blog\/tape\"><strong>here<\/strong><\/a>.<\/p>\n<p><a href=\"http:\/\/twitter.com\/sspencer_smb\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/11\/nflx-buyer.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-15367\" title=\"nflx buyer\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/11\/nflx-buyer.jpg\" alt=\"\" width=\"569\" height=\"382\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/11\/nflx-buyer.jpg 790w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/11\/nflx-buyer-300x201.jpg 300w\" sizes=\"auto, (max-width: 569px) 100vw, 569px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The other day I tweeted that I was long NFLX and short SPY and that it felt kind of \u201cweird\u201d. I wrote &#8220;weird&#8221; because the easy money trading NFLX had been on the short side for over a month and at the time the SPY was in a multi-week uptrend. As an intraday trader I often will take trades that &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/why-i-was-long-nflx\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":15367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4676,1959,341],"class_list":["post-15288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-steven_spencer_steves_blogs","tag-day-trading","tag-nflx","tag-tape-reading"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why I Was Long NFLX | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/why-i-was-long-nflx\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why I Was Long NFLX | SMB Training\" \/>\n<meta property=\"og:description\" content=\"The other day I tweeted that I was long NFLX and short SPY and that it felt kind of \u201cweird\u201d. I wrote &#8220;weird&#8221; because the easy money trading NFLX had been on the short side for over a month and at the time the SPY was in a multi-week uptrend. As an intraday trader I often will take trades that ... 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