By now you have probably seen the extraordinary move that Netflix Inc. (NASDAQ:NFLX) has made this year. But did you see how well the Trade Triangles captured the timing on these moves?
Netflix announced after the close yesterday that it is creating a seven for one stock split. This is a good move for Netflix as it was the fourth highest priced stock in the Standard & Poor's index.
Based on yesterday's close of $681.19, it would drop the share price down to $97.31. For the average investor, this makes Netflix shares a lot more palatable as it will probably generate a lot more activity in this stock.
Today, I would like to share with you how you would have fared using the Trade Triangle technology to time your moves in and out of Netflix.
The first chart shows the results using the monthly/weekly Trade Triangle strategy. This strategy produced a robust 32% return as of June 23rd.
The second chart shows how you would have fared using only the monthly Trade Triangles. This strategy produced a return of 49% as of June 23rd.
As you can see from the second chart, there are far fewer trades and this strategy is designed more for long term investors.
I challenge you to look at some of your favorite stocks using both of these strategies and see which strategy performs the best for you.
To discuss this stock, which is up sharply this morning, and any other stock, please leave a comment below this post. Many thanks.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Is it a good time to buy Netflix? What levels do you expect to see by the end of the year?
how does the triangle strategy work?
when will the 7 - 1 stock split happen ?
Hi Jacques,
Here are the details as well as link to the press release. - http://www.prnewswire.com/news-releases/netflix-announces-seven-for-one-stock-split-300103305.html
The stock dividend will be payable on July 14, 2015 to stockholders of record at the close of business on July 2, 2015. The new shares will be delivered by Netflix's transfer agent Computershare Trust Company.
Netflix stock will begin trading regular way at the post-split price on July 15, 2015. Any shares purchased between the July 2, 2015 record date and the July 14, 2015 payment date will come with a "due-bill" entitling the buyer to six additional shares for each share purchased.
Cheers,
Jeremy