Wicked Games

Ahhhh, the beauty, cruelty, anguish and wickedness of the stockmarket.

Don’t ya just love it?

I was comfortable acquiring Netflix stock a couple days ago.

And then, Netflix stock rose 11% in today’s trading and its up 20% from its intra-day low only 4 days ago.

Just think about that. Cash earns you 1% for the year.

Netflix is up 11% in a day.

And so the conundrum’s continue.

Tomorrow we’ll see those who are buying, because they are missing out.

Others may see it as a second chance to sell, if they got spooked by January’s decline.

Or what about the buyers in the last 2 days who are salivating over (or nervous about) a 11%-15% return, in such quick time. Keeping in mind, there tax to pay.

And then those who bought at today’s high of $427 prices will watch the stock fall 9% as it ‘backs and fills the ‘gap’ in the stock chart to $387.

Stocks often move to where they can do the most damage and much of it is psychological.

February 1, 2022

by Rob Zdravevski

rob@karriasset.com.au