Today was a volatile day on SPY and QQQ and they took a lot traders' attention. But if you could pull yourself away from that drama, and you have a BigShort subscription, you knew exactly where else to look for an easy win.
Today, NFLX (NETFLIX) appeared on the Dashboard, as a Top 10 Negative NOFA. BigShort traders know to click through to take a look:
Zoomed in:
Upon checking out NFLX in the morning, traders were greeted with a familiar sight— a stock is on the move. But where to position for what comes next?
We know NFLX has negative NOFA, but will that continue? Did we miss the move?
So we take stock of what the indicators are telling us:
So what did we immediately learn? Momo, usually inversely-correlated with the price of most stocks, is totally driving NFLX today. IIiiiiiinteresting.
But do we enter a trade yet? No.
So we let 15 more minutes pass and BAM! Momo, what has been driving NFLX this morning, has flipped to a negative slope and now agrees with SmartFlow and NOFA. All three flows agree.
This is our first chance to confidently enter into a put (red circle, below):
A few candles later Momo, leading the stock today, shows us an upward-pointing (bullish based on what we learned earlier) shadow bar (red circle, below). For people comfortable with scalps, this was an easy win.
But for those looking for more, there was more to be had!
A few minutes later, some traders are still in their puts. Others, out after that first scalp are looking for another opportunity to enter. Both were rewarded with a huge signal—Three flow agreement (red oval), again, and one of the largest bearish shadow bars of the day (orange oval).
This entrance (or continuance for those still in the puts) led to one of the best trades of the day and a -5% move for NFLX with all three flows aligning the entire time.
Once the three flows aligned the second time (arrows), and we made our second entrance, traders had entirely smooth sailing for the ensuing two hours of profit. NOF even added some put buying to give confidence along the way.
When it came time to exit, MomoFlow led the way by cleanly bending into an upward trajectory giving traders 15-20 minutes to exit before the bounce at the end of the day (also predicted by Momo and Smartflow).
Volatile trading days like today can be scary with nonstop news and the "main" US markets flopping around and catching traders by surprise. But with BigShort, traders are not at the mercy of a crazy market. They can go to where the action is and win.
The above analysis was of $NFLX on 3.6.25 using SF Segregated on BigShort