Hold Netflix And Sell Short Boston Scientific

Over the near term, the indices are likely to move higher into the 14^th. We have moved into the seasonally weaker August-September period. A correction is due before a strong Q4 begins. Cycles project a late-month high. The annual cycle and the 1.88-year cycle both top at that time. The peak in the latter cycle tilts the scale in favor of the September bears.

Netflix
NFLX
is highly ranked in second place in one Cycles Research screen. In August, the shares have risen 55% of the time over the last 21 years and have risen 67% of the time in both the months of September and October. Price appreciation in September has been scant, but has been second strongest in October. The monthly cycle rises into mid-September. This stock is unlikely to give back much of its price gains in the autumn. The stock can be held through any autumn turbulence.

Netflix Daily, Weekly, Monthly

Boston Scientific is on the opposite side of the ledger. It is lowly ranked in the screens. In the graph below, we can see the divergences between price versus relative strength and momentum. Monthly, the stock price is at its most overbought since 2007. There is much room to fall. Seasonally, we can see that the stock is entering its weakest season while the monthly price cycle is falling.