My trading-experiences have shown me that the strong usually do not fall without putting up a good fight. In that spirit, I am looking for a long position in Netflix (NASDAQ: NFLX), that we had let go in the vicinity of $42.

Now that NFLX has rewound some of its dramatic ascend and come to the 20-day moving average and is trading just around $39.30, it might re-attempt to scale higher. I would have really liked if my entry had been closer to the lateral trendline (around $38.20), but one can only react to the moves of the market, not predict them.

Continue reading Reloading NetFlix

Reloading NetFlix originally appeared on BloggingStocks on Mon, 30 Mar 2009 14:00:00 EST. Please see our terms for use of feeds.

This post was written by Minyanville contributor Smita Sadana.

On 2/2, a trading buddy asked me if I would short MasterCard (MA); reason being that financials are looking weak and MA has reached 50-day moving average which could act as a possible resistance and might turn the stock down.

My reply was a unequivocal NO, I wouldn't short MA. Here were the reasons.

1) Financials are weak, down 11% from the high; but notice that MA has not given way. Reaching 50-day moving average is another sign of strength. I don't engage in horse racing, but placing a bet that a strong horse among a group of weak horses will lose, didn't seem right to me!

Continue reading Not taking the MasterCard trade: Priceless

Not taking the MasterCard trade: Priceless originally appeared on BloggingStocks on Thu, 05 Feb 2009 13:45:00 EST. Please see our terms for use of feeds.

This post was written by Minyanville contributor Smita Sadana.

Apollo Group (Nasdaq: APOL) was enjoying a bump in price after reporting earnings that were well above estimates, based in increased enrollments. Of course, one can argue that people would go back to school for skill enhancement in these tough recessionary times.

However, two days after that stunning gain, APOL is off 4.9% to $82.55, on a cautious research note from Citron Research, who argue that "this growth is a one time bump."

While I do not endorse any such research or base my trading primarily on it, I am taking note of the negative reaction on double the average volume.

The stock can certainly come in a little and reduce the distance from its 200-day moving average, which is 38% at the current levels. While not at an extreme, it is unusual in this market to find stocks which are trading so far out.

I'm seeing various levels of support on the APOL chart and they range from $75 to $79.

Cautious research note crimps Apollo (APOL) flight originally appeared on BloggingStocks on Tue, 13 Jan 2009 15:40:00 EST. Please see our terms for use of feeds.