 everyone and welcome. This is Melissa Arma with the stocks. What should I review? Netflix, which has earnings out momentarily between four and five o'clock, the reporting earnings tonight. It is the big mover. It's felt today with you over on market. What a wild day for the market here. You know, I mean, we're closing actually week. We open week, then we rally. We lift it. I'll go over the market in a separate video, but Netflix is the one to watch tonight. So for those of you that don't know what I do, I focus on gaps. Netflix could gap up. Netflix could gap down. I don't know what Netflix is going to do. And I'm not going to do anything into something that has earnings where you don't know the outcome and nobody knows the outcome. And sometimes stocks report good earnings and fall and gap down and vice versa. So you really don't know one, what they're going to say or two, how the stock price is going to react. Boy, this is really tanky in here into the close. Let's look at this. Yep. Anyways, I focus on the gap. So a gap is the difference between the close and the open. How do I know the Netflix is going to gap? Because most stocks, most large companies do gap on earnings. Sometimes they do a gap that is what I call a nothing gap. Sometimes they do a gap that is a good gap or what I called a golden gap where it actually has a movement up or down that allows me to go long or short the stock. So I am always, always, always looking for the best gap to trade. Is Netflix going to be the best gap to trade tomorrow and Friday, the last day of the week? I don't know, but I'm probably going to know tonight after the earnings because I'm going to look at it and I'm going to rate it. So you can learn my system and rate gaps in the post market if they gap at night. You can learn my system and rate gaps in the pre market. Many stocks also gap in the pre market. The market often gaps in the pre market. Usually I wait until the morning. Now I am going to look at this tonight but I usually wait to rank things until the morning because I feel like I'm clear and fresh on the day once I see that. So let's take a look at Netflix and just see what of this here. So this had quite a tumble in 2022 like many, many stocks did like the market did but I mean, more so than others because if you go back, I mean, let's just go back to a year from now, the earnings to start out, which was 121. It was the night before it was 120 at night. Then it was 121 on the day when it fell. The stock went literally from before the earnings to over 500 to under 400. So it was a terrible, terrible, terrible earnings and a terrible gap for Netflix on that particular day. People have been buying it though. I'd say the last six, seven months ever since this started to bottom out here right in July, people were going along it. We have not gone along this. In fact, I haven't played this at all for quite some time. I might be playing it tomorrow. I wanna see what I wanna do. Do I short every gap down? No, some gap downs aren't good. Some gap downs reverse. Do I go along every up gap? No, some bullish gaps reverse too and go down. So I rate the gap to determine it but I'm not taking it in the opposite direction if that makes any sense. So for example, say this gap's down and I rate it and it's not a good gap down. I'm not gonna flip it and go long. I'll just do something else. I'll look for something better, okay? So you always, always, always have to find the best gap but I still take it in the direction of the gap but only if it rates good. The interesting thing is like I said, ever since it started bottoming out here in July around 175 and change, this stock price has moved up and while I'm not denying that you could have bought it around 175 or even in the 200 area and been up. This obviously has run up today was even while it was falling over 320. The fact is that this to me could do any one of a number of things tonight. It could tank again and it could go up again. So remember, a year ago it was what? Over 500. Well here it's happening right now. It was over 500. At one point it was well under 200. So let's see what this is doing. Here, this is a gap. So right now it's trading at 340 and change closed at 3 2018. So right now this is up. Let's look at it at 340. This is here. Now, again, I'm gonna let this keep flushing out because when you see something like this it can spike up, then spike down, then spike up again or it could keep going up. Get reverse. Let's look at the market. So this is a live gap. Again, I'm gonna rate till tomorrow to rate it. This is lifting the market. Market closed around 275 and change. We're now at 276 and change. So I'm gonna be watching this and seeing where is this gonna open? Where is it gonna drop? Where is it gonna fall? Where is it gonna rally? But this is a live gap. So one of the reasons I also don't play after market hours, like you could day trade this here is things don't always go in the direction that they start off. This might, I mean, if this keeps going this goes up to 350, 360. But it also could drop down again then to 310. So I don't trade this. I just don't. I wait until the live day, which will be tomorrow morning between 9.30 and four. I wait until tomorrow to rate the gap. But this is a live gap. This is a bullish gap right now as we're talking. And it's lifting the market. Not as much as you would think though. So I'm gonna watch this. It's 403. They're doing their earnings call probably right now. Or at five, it could be at five and this is just reacting. So we'll see what this says. But anyways, getting back to the chart. The stock has been getting bought since July. It bombed a year ago. It's nowhere near the price it was a year ago. Remember, this is one of the pandemic stocks that really got such a huge lift during COVID in 2020 and 2021 had a really nice rally. Can this finally recover? Will this recover after tonight's earnings after tomorrow? It's gonna need a lot more than this. A lot more than 20 points. But I'm definitely gonna be watching to see. Maybe I'll end up going long this tomorrow. I don't know. I'm gonna just enjoy my evening, but I wanted to go over this for those of you that wanna see a live gap. Here it is. Again, we closed today at three 2018 and right now we're gapping up. We're at 342 and change. So good luck with every decide to do a Netflix tomorrow and I will be watching it tomorrow in the pre-market when I get up. Have a good night, everyone.