NetFreaks

Let me share some thoughts about the market in general and Netflix in particular. About the middle of the trading day, I was captivated by a chart of the ES which looked like a beautiful short-term top. I tinted the area where I thought it would go. Since I am in a sleep-deprived stupor, however, I didn’t post it.

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Sadly, my prediction transpired beautifully (OK, I guess it’s not actually “sad”). The ES ground its way down, in spite of the usual D.C. attempts to fake-prop this thing higher. So it was a really good day.

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After the closing bell, however, is when the real fun began, particularly with one of my short positions, Netflix (NFLX). Bombs away!

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Looking at the daily chart, you can see that it has failed medium-term support. We could see lower prices tomorrow than we are seeing in this evening session.

I would particularly like to point out that Netflix is miles – – – miles!! – – away from principal long-term support. This is a breathtakingly overvalued stock with a preposterous triple-digit P/E ratio, so this could be the start of a much larger wipeout.

And now, just like Netflix, I’m going to crash.