NFLX – the Widowmaker

Talk about a battleground stock.  Well, I guess NFLX hasn’t really been much of a battleground lately, as the shorts got their heads caved in after Thursday’s 16% gap higher on earnings.  Today’s late action looks to me like basic market psychology in action.  (Click for chart) The stock was right at it’s all-time high at the $210 level and as soon as it took out that barrier, late in the afternoon in an absolute massacre of a general market tape, there was a march higher for the final two hours, as shorts gave up.  I can almost see the shorts and longs sitting across from each other at a table, seeing who will blink first in the battle of “do you want to hold this position over the weekend?”  It wasn’t much of a fight, of course, as you can see from the chart.  Nice little straight line up from 2pm to 4pm, closing at nearly $218.

I have no position in NFLX.  I think the stock is expensive, and I think it’s going higher before it goes lower. I just found the price action over the last few days to be pretty interesting and telling from a psychological point of view.

ps – If anyone has a good, simple way for me to scrape the intraday chart and embed it here, don’t hesitate to share it.  EDIT:  thanks to GYC for suggesting

Kid Dynamite is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to If you click on my links and buy anything, even something other than the product advertised, I earn a small commission, yet you don't pay any extra. Thank you for your support.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Kiddynamitesworld Blog