Netflix gaped down $100 this morning. This is the risk of owning stocks going into an earnings release.
I took two long positions last year in NFLX. The first one was a false breakout and I got stopped out for a loss. The second breakout, I caught a nice upswing and closed out for a nice profit at 680. It than formed a double top along with a H&S top. A few warning signs were available using classic technical analysis. I have been caught on the wrong side of an earnings release many times. They are never pleasant.
