NFLX had an awesome gap, anyone call that?

Mr. Crabs

Established member
598 3
I looked back on the accumulation / short volume and it was definitely predictable, not that I called it wondering if anyone expected it or capitalized on it. Just wondering, because I know there's some group of traders out there that definitely did reap that 50% this week.
 

wackypete2

Legendary member
10,229 2,055
netflix, google, and IBM were all nice gainers this week. I just watched though. It's been a long time since I played the "after earnings announcements" game :)

Peter
 

Mr. Crabs

Established member
598 3
netflix, google, and IBM were all nice gainers this week. I just watched though. It's been a long time since I played the "after earnings announcements" game :)

Peter

Yea the strong stocks have had steller performances this past year. It's pretty amazing what some extra money supply can do for the market.
 

Vicorka

Active member
246 7
Traders are moving from AAPL to NFLX???

I any case 50% move in two trading session is not normal. After such jump on such huge volume I would expect to see side-way action and possible some correction down.

On the other hand, NFLX could be good in long run. Technology moves up and with constantly increasing internet speed and ability to deliver high resolution streaming pictures, sooner or later, internet TV will push out of the market cable TV and Satellite TV by simple three reasons:
1. It is cheaper for the company to deliver the product
2. It is cheaper for the consumer
3. It is more convenient - you may travel with it and you do not carry satellite antenna with you...

The main stone on the NFLX is the difficulties of signing partnership with different companies to deliver their products. However, nobody can stop the progress. Many companies (Like CNN) already have streaming internet video channels. It could be NFLX or any other company but sooner or later somebody with gather these channels in to packages and will deliver to public at cheaper than satellite and cable price.
 
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Mr. Crabs

Established member
598 3
Traders are moving from AAPL to NFLX???

I any case 50% move in two trading session is not normal. After such jump on such huge volume I would expect to see side-way action and possible some correction down.

On the other hand, NFLX could be good in long run. Technology moves up and with constantly increasing internet speed and ability to deliver high resolution streaming pictures, sooner or later, internet TV will push out of the market cable TV and Satellite TV by simple three reasons:
1. It is cheaper for the company to deliver the product
2. It is cheaper for the consumer
3. It is more convenient - you may travel with it and you do not carry satellite antenna with you...

The main stone on the NFLX is the difficulties of signing partnership with different companies to deliver their products. However, nobody can stop the progress. Many companies (Like CNN) already have streaming internet video channels. It could be NFLX or any other company but sooner or later somebody with gather these channels in to packages and will deliver to public at cheaper than satellite and cable price.

I expect any sharp correction will be delayed by a few weeks, I think this last gap was so that the loaders on bottom could sell off at a high price, it should be sustained for a bit longer, the market cap is pretty small for such a big name company.
 

Tradesight

Newbie
0 3
I looked back on the accumulation / short volume and it was definitely predictable, not that I called it wondering if anyone expected it or capitalized on it. Just wondering, because I know there's some group of traders out there that definitely did reap that 50% this week.

...And there's a lot of traders who lost 50%. Going into the earnings, 10mil of the 55mil outstanding shares were sold short. That's a really big short interest. This is probably what made the gap so severe. They took it all the way up to the 50% Fib before finding resistance. It will take some time for the shorts to sort things out. Some will add and some will reduce their positions. The only thing for sure is that the $178 area on the chart is really important.

This is also a very news driven animal and prone to big swings on contract announcements. Full contact trading!
 

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Mr. Crabs

Established member
598 3
...And there's a lot of traders who lost 50%. Going into the earnings, 10mil of the 55mil outstanding shares were sold short. That's a really big short interest. This is probably what made the gap so severe. They took it all the way up to the 50% Fib before finding resistance. It will take some time for the shorts to sort things out. Some will add and some will reduce their positions. The only thing for sure is that the $178 area on the chart is really important.

This is also a very news driven animal and prone to big swings on contract announcements. Full contact trading!

Amazing people shorted this what were they thinking the market cap is small and the profits the founding investors made on the original run to $300 or so will definitely be invested as support.

Unbelievable amount of shorts I didn't even look at that... They had it coming, very bad judgement on their part.
 
 
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