skip to page content

Is Apple About To Buy Netflix?

Adam Hewison - MarketClub

Loading the player...

ello MarketClub members everywhere. The buzz around Wall Street this morning is that Apple is going to buy Netflix. As you probably know, Apple has a huge cash hoard rumored to be somewhere around the $200 billion level. Netflix is worth perhaps 40 or $50 billion, so it doesn't take a lot of imagination to see how a deal like this could work. Apple wants to move into the content and distribution space and Netflix might just be the vehicle to do that.

Apple Inc. (NASDAQ:AAPL): Here is the rundown on Apple, several days ago Warren Buffett purchased Apple stock as he thought it was undervalued. Based on the Trade Triangles I'm on the sidelines in having taken a small loss of $3.39. Technically the $104 level should present a major barrier for Apple. One thing to remember, this is only a rumor and it is not supported by a strong technical picture. The biggest concern I have is the current lack of innovation by the company. In my opinion, without innovation a tech company like Apple is going to have a hard go of it.

Netflix Inc. (NASDAQ:NFLX): I think it is fair to say that Netflix is the number 1 supplier of streaming entertainment as more and more individuals elect to stay home and watch content. Netflix appears to be a valuable content partner for Apple, but will they buy Netflix? That is anyone's guess at the moment.  The technical picture for Netflix is suggesting a sidelines position this after the Trade Triangles triggered a green weekly covering a short position which produced a gain of $4.54 in just over 4 weeks.

Crude Oil (NYMEX:CL.N16.E): The magical and psychological $50 a barrel level was breached early this morning before falling back. Based on a very special technical formation I expect that crude oil, which is heavily overbought, is due for a pullback. Should you sell crude here? The answer to that question has to be no as you are not trying to pick a top in this market, that is a losers game. What I am saying, however, is that you may want to take some money off the table if you have been following the Trade Triangles, but don't necessarily get out of all positions.

Gold (NYMEX:GC.M16.E): Gold found support at the $1220.10 yesterday, which is pretty much where I predicted it would find support. I now expect it to trade back-and-forth around the $1220 area as it regroups and gets used to its new price level. As always, I will be watching the Trade Triangles closely as the Trade Triangles are presently short gold from $1244.60. 

Indices: Yesterday's action was enough to trigger a green weekly Trade Triangle on the S&P 500. Both the weekly and monthly Trade Triangles are aligned now indicating a long position. This is much like the NASDAQ that also has both the monthly and weekly Trade Triangles aligned. The only laggard in the bunch at the moment is the DOW, which is suggesting that a sideline position in this index is the best place to be at the moment.

Back to videos

Get Started With Your 30-Day MarketClub Trial Right Now

Get Started

© Copyright MarketClub™ All rights reserved | User Agreement | Do Not Sell My Personal Information

MarketClub/INO, a division of TIFIN Group LLC, is affiliated with Magnifi via common ownership. Affiliates of Magnifi will receive cash compensation for referrals of clients who open accounts with Magnifi. Due to this compensation, a conflict of interest exists since MarketClub/INO has an incentive to recommend Magnifi LLC.

Magnifi LLC does not charge advisory fees or transaction fees for non-managed accounts. Clients who elect to have Magnifi LLC manage all or a portion of their account will be charged an advisory fee. Please see Magnifi’s Form ADV for additional information about fees and charges that may apply. Magnifi LLC receives compensation from product sponsors related to recommendations. Other fees and charges may apply.

Magnifi, normally $14 per month, will be available at no additional cost to MarketClub members. Account holders must be 18 years of age and have an approved Magnifi account. Magnifi will determine qualifying account holders at its own discretion.

U.S. Government Required Disclaimer—Commodity Futures Trading Commission
Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41—HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or INO.com. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the MarketClub™ methodology or system will generate profits or ensure freedom from losses. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. Each individual's success depends on his or her background, dedication, desire, and motivation.

×

It’s not goodbye, it’s hello Magnifi!

You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.

Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.

Take Me To Magnifi