The big earnings news yesterday afternoon was Netflix (there was an era 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 am typing this, the stock’s gains are shrinking very rapidly. I wonder if we’re at “Peak Netflix” now.
More important is the overall market, represented by the ES. What was concerning to 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 at least seems that this enormous gap isn’t to be trifled with. We’ve got a nice sea of red this morning, and it’s a fine way to start the day after yesterday’s nauseating buy-fest.