Netflix: +1.1% in a few days

Our team has been working on a new predictive analytical product. The main purpose of this product is to provide buying and selling signals that we generate by using the collective intelligence. Now we can get indicators that show probability for a stock (or any other financial instrument) to rise/decline during next week.

As an example to illustrate this point, we will tell you about our Netflix trade that we managed to take last week. Shares of Netflix Inc. (NFLX) surged more than 4% on Monday, October 3 as investors speculated the online video service could be a takeover target. Our analysts considered buying Netflix stock on Wednesday. Thus, we published the question below in our mobile application:

Netflix Inc. (NFLX) rose to its highest since May as investors speculated the online video service could be a takeover target. The stock closed at $102.33 on Tuesday, October 4. Will shares of Netflix close above $102.33 on October 12?

According to Cindicator users, the probability for Netflix to close above $102.33 on October 12 was 69%. Therefore, we decided to buy Netflix stock at open on Wednesday, October 5. We went long at 9:31 AM at $103.94, and the stock climbed to $106.97 that day. However, we decided to hold our position longer (because it was a weekly signal), and closed it at $105.07 next day (we didn’t want the price to drop below our entry).

Overall, gross profit was 1.1%.

Happy trading,