NFLX

I don't like the way Netflix is acting right now.  It has pulled back hard in the past few days.  I have reconsidered where the stop should be and recommend we move it up to $105/share from the previous recommendation at $90.

NFLX up $12 in less than 2 weeks

I recommended a Buy on Netflix 11 days ago and it has gone up almost every day since then.  It is now up $12/share since my recommendation but it still has a long way to go so don't  be afraid to buy here.

Buy Netflix

I just bought NFLX in my retirement account at $120.  NFLX has been beaten down badly in recent months after announcing the exodus of 800,000 customers in response to increasing prices.  You can see in the chart below that in the last 6 months, NFLX dropped from over $300/share to below $63.  It has now climbed up to $120/share and seems to be headed up again.  I believe it has been overly punished for the loss of customers and is underpriced.

I bought NFLX with a stop at $90/share.

The market is up 10% since my last posting

The market has been volatile since my last posting on August 9.  I advised to buy a few days before the low, the Dow Jones Industrial Average then climbed about 700 points, dropped back to a little lower than when I advised to buy, and has since climbed up to where it closed yesterday at 11,866 -- up almost 10%. 

We will probably experience more volatility in the markets with an overall upward direction for a few more months.  I am looking to sell again at any high point in the DJIA near or above 12,500.

Buy Buy Buy !!!

This is an amazing time to buy for investors.  Yes, I know you are scared to death from the major drop in the markets, but AFTER that has happened and we are near a long-time bottom is exactly when you want to buy.  Did you notice the huge buying that happened at the end of the trading day today?  Those are the professionals buying huge at these lows.  Look at the long-term charts and you'll see these are short-term lows.  Anyone who buys good companies that are doing well financially now will be rewarded big but it may be a year before you see it, but you WILL see it.

The Big Picture

Yes, the economy is terrible.  Yes, the sentiment is awful and the political fight over the debt is a nightmare.  But the big picture shows we are somewhat near where I suspect the lows will bottom out -- 11866 on the Dow Jones Industrial Average.  Go look at a one-year daily candlestick chart and you will see it.  This is a good buying opportunity FOR LONG-TERM INVESTORS ONLY.  If you can't stick to your investment decisions, now is the wrong time to enter the market.  Buy good solid stocks that continue to improve financially.

Buy order on PCLN

You may have noticed that the market is dropping like a rock but Priceline.com is not -- it's holding up quite well, actually.  PCLN has held up well at support around $515/share.  I am buying here at the close at $518.32 with a stop at $508.32 for a $10 cushion before hitting my stop.  My target is the high of a few weeks ago of $550 or higher.  The risk vs. reward is $10 risk : $32 or 3.2 to 1.