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Netflix (NFLX) has my attention this morning – using Fibonacci support/retracement levels, dating back to the beginning of the rally back in July ’07, with it peaking four years later in July ’11, you’ll see that it has pulled back PERFECTLY to the 61.8% retracement level at $126 and has bounced. In fact, yesterday, when the market was down well over 3%, NFLX managed to eek out a gain, without once dipping below that key support level. That is strength, my friends.

Now I don’t necessarily think that this market or this stock is necessarily going to soar higher from here, it is definitely worth considering for a swing-trade. With a stop below $125 or so, there isn’t a lot to have to risk. Playing options on this one (I’d stay away from October calls and look at a minimum of November instead) is also a consideration – say November $165’s. But I’d let it drop some from $133 to maybe back down into the high $120’s before jumping on it, and be sure to sell the calls and cut the losses, if for any reason, price closes below $125.

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