13Jan12:54 pmEST

Making of a Move Into Winter

Netflix reports earnings next week, on January 19th. Barring a sizable gap up, I suspect the stock, after a sizzling spring and summer last year, may be set to hibernate for the rest of winter. 

After popping last Wednesday on international growth news, the stock is giving back a chunk of those gains today. 

More importantly, however, is the overall chart structure, seen below. Note the rising channel, with that lower light blue support dating back a full year now, to the beginning of 2015. The more that is probed, which it has been plenty of times now, the more likely it is to eventually give way, especially as upside squeezes lose their luster and staying power. 

In addition to the small cap and other "FANG" weakness today, we know NFLX has shown relative weakness to AMZN FB GOOGL since early-December. A breakdown here would simply add credence to the notion that Netflix's international growth and original content prospects have been "open and notorious," to borrow a phrase from property law, for a good while now and should hardly come as a surprise to anyone, especially Mr. Market. 

An Opening Tease Update on the Falling Wedge ...


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