AMZN, FB, NFLX, GOOG - breakout palooza

Welcome back Active Traders and Wealth Builders.

It was a great week to be an investor, worries about Greece and a signed Nuclear deal with Iran gave the markets a reason to cheer and cheer they did.

We had spectacular breakouts in AMZN, FB, NFLX and GOOG.  Most of these symbols respected the Fib lines nicely.

I had my eye on NFLX post earnings, and was able to trade it due to knowledge of the 161% line. I noted at the time the way price reacted to the line and traded accordingly by selling puts at the 108 strike. As it turns out, it was pretty close to the low of the which was was 107.68 and the 161% line was at 107.75.  Close enough for government work as they say.

And therein lies the answer to a common question about Fiblines.  How do you know which lines the stock will respect in advance?  The answer is,you don't, but the price action itself will often give you the clues you need to take advantage.

Facebook also rocked out to new all-time highs and the next target is the 161% line at about 100.49 where I expect it to make it too this coming week after earnings.

Overall, keep in mind that the 161% line is relatively low in the fib sequence and long term, I expect Facebook shares to go much, much higher.

Have a great week ahead.