Wow NFLX took off today with a negative MACD on the hourly, heavy insider selling again, and a technical negative divergence on the the daily chart. All it takes is one other company to step up to the plate and start offering this service. They wouldn't even have to buy Netflix; YouTube, Apple, or Microsoft could simply start doing what they are doing. If you are long this stock be very careful. I was dead wrong about BIDU last year and have stayed small with this one ,but i am watching this guy closely. Furthermore, if you listen to the conference call (which you can here http://ir.netflix.com/ ) they talk about the need to beef up networks to allow for streaming video. This could costs them millions and the need of a stock offering is a possibility.
Today we had:
10,685,000 calls traded compared to 9,434,528 yesterday
6,180,045 puts traded compared to 5,959,097 yesterday
leaving us with a .57 put call ratio, one thing that stood out to me today was a lower put call ratio and a higher VIX. The VIX closed at 20.23 compared to 19.86 yesterday. This means that investors are charging a premium for these puts. Also the call volume outweighed the past 4 trading sessions. We hadn't seen call buying like since 10/19/2010, then on the 10/20/2010 we opened down. Lets see if we gap down tomorrow?
Today was a positive session for the market. We were down big at the open and then we closed positive. We had only 126 new highs with 10 new lows, this tells me the market is gonna have trouble making new highs.
AAPL has yet to reclaim its pre earnings high of $319 or so. The insiders which have never sold their precious shares just began selling them. This is extremely bearish for the stock. If we break down below $305 i believe $290 is next.
FCX, which is a bell weather and great market indicator is also having a problem breaking through $100. A retracement of at least $85 is in the cards. I am watching the $93 dollar area for support and $98.50 as resistance.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment