With two bearish impulse legs on the hourly chart since Friday morning, Netflix gave us ample time to exit our small position with a profit of as much as $324, depending on which of the signals you heeded.  Despite our short-term bull play, Netflix was a sitting duck ahead of Monday’s earnings.  The earnings were great, as was the news that 630,000 new subscribers had come aboard. However, that didn’t stop the Wall Street crime syndicate that manipulates the stock for a living from sending it into a $30 dive after the close.

Once again, we should be grateful that we had no inkling of how good the earnings report would be.  It should be clear by now that those who did have an inkling, and who logically assumed the news would drive the stock sharply higher, got sandbagged.  However, you’ll want to keep in mind that no stock ever gets hit as badly as NFLX did yesterday afternoon unless DaBoyz are eager to buy it at distress prices. Although it will be scant consolation to the widows and pensioners who got shaken out of the stock in the throes of Monday’s 12% plunge, the plunge itself should be viewed as evidence that Netflix’s sleazy handlers intend to run up the stock again once granny has been separated from her shares.

Meanwhile, we must congratulate the aforesaid sleazeballs (aka arse bandits) for concocting the persuasive ‘buy’ story that was used to push NFLX to recent highs of around $270.  The company was going to reap a fortune from its foray into Hollywood and the ‘content’ business. Or so the story went.  There may be a profit in producing hit TV shows and movies, but if it were all that easy Disney would not be writing off hundreds of millions of dollars in losses for its recent bomb, The Lone Ranger.  And now, we eagerly await whatever imaginative spin Wall Street employs to drive the stock upwards of $300. _______ UPDATE (July 26, 8:23 p.m. EDT): The finishing stroke to yesterday’s rally was a short, bullish impulse leg that had been mostly corrected at the bell (see inset, a new chart). The stock was nominally on a buy signal, but if you miss it there’s another potential opportunity to ‘camo’ your way aboard using the  subtle external peak at 248.50 that I’ve highlighted. A pop that exceeds it slightly, followed by a b-c pullback, could be your entry ticket. ________ UPDATE (August 5 at 9:35 a.m.):  The trade suggested above will no longer work, since DaSleazeballs have gapped the stock lower today.  My strong hunch is that this shakedown will be reversed later today — perhaps within minutes — once supply has been exhausted.  Accordingly, you should look for a tradable turn on the one-minute chart. _______ UPDATE (Later in the day):  What a shocking surprise.  DaSleazeballs goosed the stock $12 after they’d finished shaking down the rubes to as low as 241.70.  Then they had the chutzpah to close the stock on the high of the day, 253.84, the better to squeeze shorts on tomorrow’s opening. Capone is probably cursing himself in hell for having toiled as a bootlegger rather than as a white collar exchange specialist. _______ UPDATE (August 12): The current rally target at 295.60 lies 18% above current levels (see inset, a fresh chart), but it could be a tiresome slog getting there. The consolidation at p could offer camo buying opportunities galore, but be prepared to take small profits on rallies that don’t pan out. _______ UPDATE (August 20, 10:05 p.m. EDT):  A ‘tiresome slog’ this ain’t.  In fact, so steep and relentless was yesterday’s surge — call it a wilding spree — that it would have stopped out only one trade executed at ‘x’ on the 5-minute chart.  If you’re looking to leverage a likelihood today, watch for a stall at exactly 277.02. The chart, a new one, shows why.