Might have something to do with talk of a mini iPhone that would be half the size of the current make. More likely, it's just cash inflows pouring into the market as the week begins, scared money that avoided the risks of a wacky environment. How else to explain how EGPT has gone up $1 since I noticed it afterhours on Friday (now 19.60). Or NFLX climbing another $5 (to 236). Commodity-driven stocks like MOS and POT have enjoyed spurts this morning, but SLV and EXK are up, too. GLD (+0.6%), also up.
The broader market is pretty flat, but the momo leaders are still on fire. Zoom zoom zoom...
Update, 1:17 pm (Hawaii). A solid eight hours of sleep with intermittent checks on the market. That's how it's possible to doze through the session. Even if I'd been up, I wouldn't have bought AAPL at 359.38 or NFLX at 247.55, their highs of the day. No, I knew there would be no chasing of high flyers. I want great stocks cheap. I was better off sleeping.
How to explain NFLX, which ran higher — currently up 15.68 to 246.75 (+6.8%) — on news of increased popularity online. The numbers are bizarre and incredible: 20% of online traffic is because of Netflix now. Again, I say that the CEO of the company showed his savvy and efficiency a few years back during an interview on 60 Minutes. Still, I was not convinced. I was wrrrrrrong. Even a year ago, shares were available at 70 or so. Small float. Great opportunity. But I thought Apple and Amazon would invade the online streaming niche. Wrong again.
WSJ says time spent per viewer was up on Netflix 23%, 28% more video was streamed and customers spent 45% more time watching video online. (I wonder how movie theater stocks are doing.)
AAPL, by far, is my trading vehicle of choice, but in reality, it's a steady mover with occasional spurts. Better as a buy-and-hold over the short or mid-term. NFLX, clearly, is a short-stomper to the extreme. The combination of good news and fund inflows today didn't hurt, but I won't expect continued rise in the price tomorrow or the day after. I never expected NFLX to see 245 this soon, either, so...
Speaking of AAPL, that spike from 357 to 359 was dizzying. And shares stayed above 358 the rest of the day. Not many wanted to sell. Sure, 11 million shares aren't much to brag about, but there is simply a shortage of sellers while fund managers continue to collect shares. I try not to think about my own "relationship" with AAPL, having sold last week at 358.70. There was no way I was dipping a single toe into the water after that mini flash crash. Apparently, whoever (hedge funds) sold massively during that 30-minute period is done selling... right?
Never say never ... but those who have held since the run to 200 and dip to 78 and back up to 358 have probably gotten all their sleep and have begun counting down the days to retirement. More power to them.
AAPL: Huge spike in the first 10 minutes.
Volume tapering off, but Apple knows how
to consistently 'leak' stimulating news.
Massive short covering in NFLX at the open.
Count 'em: Six major gap-ups in the past 12 months.
Update, 4:55 pm (Hawaii). Catching up on today's big move in NFLX. So what really made NFLX jump another 16 bucks today? Qualcomm's development of an essential chip platform? More on Snapdragon's prowess here. Was it an analyst's upgrade? David Miller raised his target from 224 to 316.
Wow.
Leonard Brecken accused Netflix of "playing accounting games."
Update, 5:53 am (Hawaii). OK, Brecken and whoever else can bash Netflix all they like, but combine online movies with something cool like Apple iPads and iPhones (via app) and you have a recipe for uber-cool success, a Viagrish effect. I can accept that. May never buy at these levels, but it's there.
But what about LULU? Really, I understand trends and fads, but this is parabolic. A double in four months? Really? Though Lululemon Athletica is legitimate as a company that sells butt-shaping product to yoga-loving women across America, the current trend in the stock reminds me of Fall, 2007. At that time, LULU was fresh off its IPO and I grabbed a few shares at 45. It exploded to 60, then fell back to 45 even more quickly and I got out at break-even.
Now that it's trading at 83 with a chart that resembles Mt. Everest, is LULU's spurt about to run empty? Is this a sign of a market top? I think a short-term selloff is on the way. Nothing wrong, just basic supply and demand.
The Viagrish effect will wear off or it'll break on its own.
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