Netflix, Short Long Story to learn with ElliottWave,
I took NFLX long (after they reported earnings), not before, why ?
Because it´s weekly chart has reached max. W2 retracement and daily chart was building it a impulse wave which I did wait that it won´t be a zigzag wave.
I did watch it´s recovery phase for long how it is going to do it, with zigzag or impulse.
Without going all the deep issues related for the company (A dead lot have to went correctly for them to become global & dominant player and there is troubles, like margins potentially ahead) and there is too many issues with it starting from tangible assetts and certainly need to raise more cash to become global in this field.
I just faced it like this:
There have to a be a lot of things wrong that chart is capable to reach elliott wave 2 max. bottom as public have to be super bearish with it, with this size degree (weekly chart).
If you do deal with wave2 lows, you are there alone - there isn´t no-one home.
Also I don´t believe something dead boring as WallMart will enter for this area as competitor, WMT is only local poor boy shop available only in US - if one want to destroy your brand or deal with low-end customers only, deal with it. It belongs for totally different customer segment.
Amazon is of cource question, which btw. start to be WallMart of the Net also > boring but works.
Bring the Tv for 2012 x-mas sale.
NFLX: If you are interested from this high risk name you might want to look if there is another degree W2 (ABC) change for it during the winter / spring but so far I think it just changed even for more agressive wave.