I am still waiting for my huge market correction. I wonder what will kick start it. But from the small survey that we had, most people thought it would happened when the DOW touched 12000. I actually voted 12500, but I think there are signs that the market is weakening.
It looks like insider selling has gone up enormously. Netflix CEO has been selling shares, but today the stock surged 4% to $220. And it also made a new high of $221!
I do not believe in Netflix because I am still eagerly waiting for Amazon Prime to offer its instant video streaming platform. I think Amazon will release it before the month is done. This will be a huge blow to Netflix operating margins. Amazon Prime offer is real, this is because Amazon has already acquired the british video streaming company http://www.lovefilm.com/
Netflix is a fundamental short, but it is wall street darling. Let’s see if this big short will work from $220.
Furthermore, STARZ plays might raise Netflix’s cost.
Many hedgefunds have failed to short NFLX, and NFLX has been a short covering success so far. Even today’s movement was mostly short covering by hedgefunds who gave up shorting Netflix.
Netflix cant just climb as high as this. It will be the biggest pump and dump in history. Many hedgefunds hate Netflix as they have been overdrawn by it.
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