Mind the GAP - A Lesson on Gap Analysis using Netflix

Here are some great text book gaps to observe in the netflix stock price. We can see the breakaway gap, the continuation gaps, exhaustion and island reversal gaps. But what does it all mean? Ultimately the gaps indicate strong sentiment and there is plenty of that with Netflix. I have Netflix at home, it is great, I love the service, the content and business model of the company. I think the future is very bright for netflix. As a long-term buy and hold it is a no brainer to own this stock. But as a trader the short term is not so bright. Interestingly though this could all change with tomorrows earnings report. So why not buy today and enjoy the ride upwards tomorrow? Well, because it is 50/50 which way the stock will go. Better wait for earnings and enjoy the longer term moves with a lot less risk. The big profits are not made in a day they are in weeks months and years.