Netflix Negotiations Reaching a Tipping Point

For a while now, we have been tracking Netflix as it negotiated its 200-day moving average, still decline and presenting a formidable challenge for even the most steadfast bulls in the name. 

NFLX recently fell behind the pack of major leaders, such as AMZN FB GOOGL, even PCLN, in terms of technical strength. And that is persisting this morning, with NFLX down more than 4% as I write this on news they are losing subscribers. 

I am not about to declare Netflix to be an easy short. But if we see a negative post-FOMC reaction into the end of this week then I believe aggressive speculators can look at puts for a potential major breakdown on longer-term timeframes. NFLX remains a viable buyout target, which is why it is not a favored common stock shorting type of play--Small size (as a percentage of capital) puts make more sense in that regard in order to mitigate risk. 

Either way, NFLX below $95 would now be trouble for longs and a sure sign of caution barring a buyout. And even if you have no interest whatsoever in shorting, as far as longs go there are plenty of more actionable and viable ideas out there if we get that post-FOMC rally.