A Drop in IQ

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Yesterday was the “big event day” for Apple, which apparently consisted of introducing a credit card (whoop-de-freakin’ do) and also announcing a big push into content, with media moguls like Oprah and Spielberg showing up. AAPL, which remains almost 20% below its high from half a year ago, isn’t’ exactly exploding on the announcement. It remains trapped at its midline and below an important price gap.

Some speculated that Apple’s aggressive push into the world of content creation would harm Netflix, but it doesn’t seem to be. NFLX remains happily floating sky-high, with a P/E of almost 140. Incredible.

One firm that does seem to be taking it on the chin is “the Netflix of China”, IQ. They were already in pretty bad shape at about half their peak price, but the past two days have seen the weakness continue. The latest price gap marks an important point of resistance.