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Talk about a battleground stock. Well, I guess Netflix (NASDAQ:NFLX) hasn't really been much of a battleground lately, as the shorts got their heads caved in after Thursday's 16% gap higher on earnings. Friday's late action looks to me like basic market psychology in action. (Click for chart) The stock was right at it's all-time high at the $210 level and as soon as it took out that barrier, late in the afternoon in an absolute massacre of a general market tape, there was a march higher for the final two hours, as shorts gave up.

I can almost see the shorts and longs sitting across from each other at a table, seeing who will blink first in the battle of "do you want to hold this position over the weekend?" It wasn't much of a fight, of course, as you can see from the chart. Nice little straight line up from 2pm to 4pm, closing at nearly $218.


I have no position in NFLX. I think the stock is expensive, and I think it's going higher before it goes lower. I just found the price action over the last few days to be pretty interesting and telling from a psychological point of view.
Disclosure: No position
Source: Netflix: The Widowmaker