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.