Netflix Reaction Will Provide a Good Test for This Stock Market

 | Apr 16, 2018 | 4:46 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


Monday was one of those days when the folks in the business media liked the action much more than the folks that actually trade it. On the surface the indices had good-sized gains and breadth was very strong at around 4,900 gainers to 2,050 decliners. New highs expanded to more than 150 and clearly it was a day of accumulation for the bulls.

What many individual market players complained about was the choppiness and inconsistency of much of the trading. This wasn't one of those days were stocks were steadily chased higher. My list of names that closed near their intraday highs was just a couple dozen, at most.

Beauty is in the eye of the beholder but for me the best-looking market is one in which I see technical setups that I think can generate some sustained momentum. I struggled all day to find stocks that I felt were positioned well for further strength in a good market and could barely find a thing I liked. Hopefully earnings will help to change that but I am skeptical of market's overall health for this reason and do not trust that we will see much more upside.

Netflix (NFLX) earnings are out and the initial reaction was slightly negative, but the company guided up and now the stock is trading up much more aggressively. It will be a good test of the overall market mood to see how willing buyers are to chase this news. The raw numbers were not that hot but the guidance is what they are buying. We need moves like this to hold if earnings season is going to produce some real momentum.

It is a tricky market for traders right now and the indices are not reflective of overall market health. Stay selective and manage positions carefully.

Have a good evening. I'll see you tomorrow.

Columnist Conversations

Texas Instruments (TXN) announced after the close that CEO Brian Crutcher resigned due to violations of the c...
The initial upside target off the recent low comes in around the 333.51-337.71 area. Here is the updated ch...
A cup/handle is one of the strongest and most precise chart patterns out there, proven more often than not.&nb...
Today is 12 days up from the 6/28 low which is very similar to prior rallies of 11-13 days up.  This is r...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.