NFLX Revisited

I mentioned NFLX had the makings of a bubble October last year.  10 months later, it has finally happened.  Cashing out on the short side took immense patience but it could be done; as you can see multiple attempts must be made in order to finally catch the downfall.

In hindsight, catching the $300 short would have been absolute luck and guessing.  A safter approach is to short at the 20/50 day ema retest which occurred 8/31/2011, just a couple weeks ago.  Resulting entry price: $230-240. 

Netflix never had unique, difficult to replicate product.  Business model doesn't bar entry from competitors.  It was just a matter of time, like many ideas in history.

Is it too late to short? No, but wait for the next 20/50 day ema retest.  The gap from $50 will be closed.