NFLX stay short.

nflx mar 2011

Early Feb I suggested this was a good short, with the caveat that that should only be done by way of an option. Since then it went another $20 higher but we may be at the beginning of a serious decline. With its p/e then above 74 and more shorts on it than I have seen on just about any stock lately, this thing definitely needed the “greater fool” to come along steadily to keep the game going. Facebook’s entry into this field seems to have unglued the optimist a bit. My best guess, using EW, is that this stock could trade at $91 or lower before the year is out. But as always, no promises.