Netflix (NFLX) is a highly shorted stock that has come under heavy fire to the downside in the last year, but also provides great calculated long trades based on its large short float. When if breaks above key levels, short squeezes can often be initiated that trigger big moves. When those squeezes start to reach their last legs, though, NFLX can once again provide a great short entry. That is what we saw today. I targeted both sides of the trade today, trading NFLX long through yesterday's high and then short when it came back below. The trade followed through nicely and there appears to be a short term top pivot in NFLX.
*DISCLOSURES: No position in NFLX
