The Dow closed slightly lower Monday but the S&P and Nasdaq both eked out gains on Valentine’s Day. Investors bought cautiously after Friday’s breakout, but their certainly weren’t any aggressive sellers either. Love for stocks is rampant at this stage of the relationship, and the uptrend is going steady. Everything’s rosy for the markets right now, but that doesn’t mean that a few months or years down the road she won’t leave you out in the cold, take the car, the kids, and all the valuables…
Netflix, Inc. (NFLX) was the story of the market today as shorts got squeezed in a big way after Whitney Tilson abandoned the cause last week. The stock closed on the highs, up more than 7% on the day, 35% since earnings, and nearly quadrupling since the start of 2010. The stock carries a high valuation even considering it’s growth rate, but the price action in NFLX once again illustrates why you have to follow technicals. Fundamentals should always be the underlying rationale for an investment or swing trade, but especially when shorting (i.e. your risk is unlimited) the technicals have to guide your execution.
Watch Scott Redler of T3Live.com’s Daily Recap below:
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