My analogue of the GMCR to NFLX long-term charts continues to pique my interest. As you know, Netflix is now destroying more and more capital by the day, whereas before it was argued to be the best stock that ever traded in an open, free marketplace (wink, nod). At issue is whether Green Mountain follows the path of Netflix. Fundamentally, I recognize that there are difference sets of circumstances at play. Frankly, that is almost always the case when creating an analogue of two charts.
What is most captivating is that Green Mountain had actually seen a steeper and more ferocious rise to its top before rolling over, which is quite the accomplishment given Neftlix’s appreciation in recent years. The old axiom of “the bigger the top, the bigger the drop,” could easily be at play here. Either way, Green Mountain bottom-picking and buy-and-hold-forever longs ought to have recognized and respected protective stop-losses, in the event that the charts remain analogous.
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i hope not cuz i went long at 68 today..hmm, this post scared me chess !
Remember those are monthly charts. So, for a trade you could make some nice coin. Just keep a stop-loss in there rather tight.
if you went long at 68, you are making 10% already, is it in the premarket, I don’t think it traded that low during the day …
Long NFLX, short GMCR pair trade could be interesting.
Whitney Tilson (prior short) now initiating long position in NFLX and hopes to buy more at lower prices …. Just saying.