The Obvious Cover

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Back on February 11, there was a widely-circulated story that the hedge fund manager Whitney Tilson – who had very publicly and loudly broadcast a huge short position months earlier in Netflix (NFLX) – had finally thrown in the towel and decided to accept the massive losses he had suffered from this short.

Naturally, the world of contrarians (such as here, and on ZeroHedge) declared that there was no better signal to short the stock, but anyone sensible knew that shorting NFLX was still kind of insane, so I doubt anyone really did anything about it.

The funny thing is this: when was the lifetime high of the stock? The very next day. And in just the tiny amount of time since then – – less than a month – – the stock is down about 20%. A little too obvious, wasn't it? But it sure worked out the way people thought.

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