Stock Market Technical Analysis Blog
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In the market today we continued the back and forth grind of a heavy market being propped up diligently as shown in the lower chart cluster.
Rather than rehash more of the same tonight I would like to focus on today's NFLX play. Last night I emailed SMVOptionAlert subscribers of the Day 50 EMA / 108 EMA pancake setup that was ready for the pinpoint price bounce play. After today's open the NFLX 85 Calls were in the $0.30 range and closed this afternoon at $3.40, over a 1,000% gain intraday.
MarketWatch posted that it was because of NFLX getting exclusive rights on Disney movies but the charts told us that the play was today and the news was cut and pasted onto it. The agreement may have been made days or weeks ago.
I also have a green mark on the NFLX chart back on 10/31 where on that date it crossed above its 108 EMA for an option gain that dwarfed today's gain. The stock news media on that day cut and pasted the news that Carl Icahn had bought a 10% stake recently as the reason for that move.
The big plays are from the technical analysis. The news, good or bad, is prepared and ready to be released when the technical analysis says the play is here. Both 108 line interactions were free money on a stick on NFLX.