Netflix continues to shine brighter than any other stock. Its a "miracle" said Allan Edwards co-CEO of The Markets Are Open "I expected Netflix to last one, maybe two at best three days, but now it has been more than 8 days and the Netflix candle has not flickered." Edwards has recently called his shot predicting the stock would soon begin in steeps decline.
Netflix struck a deal with Nu Image/Millennium Films, to allow streaming of movies still in theaters but financial terms of the arrangement weren't disclosed. Edwards commented "what do shareholders think anytime Netflix is mentioned in the news that the stock should go up? this deal provides no value to stockholders."
However, the stock market sent Netflix shares roaring 3% in morning trading to a new all time high of $146.20. Short interest of the stock to the actual float of the stock is now over 30%. Since the short side of the trade is inherently more risky than the long side, essentially most people are betting the stock to go lower.
Pete Thomson from Schaeffers Research.com stated that "as the stock continues to climb the charts, a flurry of short-covering activity could translate to additional upside."
However, Edwards was quick to point out that who would want to own a stock that upside needs to be manufactured from a hedge funds game of short covering as opposed to finding a stock with real value.
Edwards kept his sell recommendation of the stock to read his report Click Here.
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