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Friday, January 28, 2011

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.

-KD

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 Freestockcharts.com

7 comments:

Anonymous said...

Try this:
http://www.wikinvest.com/special/Embed_Stock_Chart

-BG

Kid Dynamite said...

BG- thanks, but I was unable to get an intraday NFLX chart using that... are you? the "1d" chart gives me a few days still

Anonymous said...

If this works I'll explain how to do it?
-BG

Anonymous said...

It took out the < script > code, so it might not allow it to work. But the way I got the 1 day intraday chart was to go to NFLX and then select the date range 01/27/2011 - 01/28/2011; however it only showed the 1-day chart for yesterday, so I'm stumped.
-BG

Anonymous said...

It took out the < script > code, so it might not allow it to work. But the way I got the 1 day intraday chart was to go to NFLX and then select the date range 01/27/2011 - 01/28/2011; however it only showed the 1-day chart for yesterday, so I'm stumped.
-BG

getyourselfconnected said...

Freestockcharts should do it.

Kid Dynamite said...

readers have probably noticed that the chart I embedded was too fancy for what I was looking for - it updated, so it no longer shows what I wanted to illustrate