Point and Figure Charts Comments On Netflix (NFLX)

September 29, 2011 by Thomas Mullooly

Sell Signals: Not to be ignored

Netflix (symbol NFLX) is a great example (at the present time) of what happens if investors ignore sell signals. One of the great features of point and figure charts is that they often have clear actionable points along the way. Netflix (NFLX) gave several sell signals throughout July, August and September 2011 before breaking the support line and completely falling out of bed. Take a look at this short video for a walk-through on sell signals and what can happen if you ignore them.

After seeing the Netflix (NFLX) chart generate a steady string of buy signals all the way up — there was not a single sell signal early in the year — we saw multiple sell signals in a row (not one buy signal) once the stock began to fall in July. We cannot predict what the future holds for Netflix. But do not ignore multiple sell signals.

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About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.