The big earnings news Tuesday afternoon was Netflix (NASDAQ:NFLX) – remember when it would have been IBM? – but times have changed. I had no position in NFLX and frankly, I hardly ever touch the thing, but it was an explosive move higher. What surprised me was that, explosive or not, the rip didn’t even get it to its former high. Indeed, as I type, the stock’s gains are shrinking rapidly. I wonder if we’re at “Peak Netflix” now.
More important is the overall market, represented by the ES. What concerned me was whether or not we’d have to undergo the exercise of slashing from 2825 through 2870 (the yellow zone below), a trip that I’d seriously prefer not to take. Well nothing is assured but for the moment, it seems that this enormous gap isn’t to be trifled with. Wednesday morning saw a nice sea of red, which was a relief after Tuesday's nauseating buy-fest.
