10/18 Recap. Netflix Soars After Hours

We’ve had a nice little rally the last couple days and while everyone is excited again with Netflix zooming higher after hours, I’d like to point out that we haven’t even closed over the 8 weekly. For the moment we have reclaimed the 200 DMA on the weekly but to me, this still looks like an oversold bounce more than a bottom being put in.

If you look at the daily, we pulled back and closed right at a key moving average. There is a nice bullish divergence forming on the daily as you can see with what looks like a double bottom, but I would like to see us get over 390 before I say we are out of the danger zone.

The dollar continues forming its lower high with a nice doji today. It rejected a key moving average which is now stiff resistance. The rally the last 2 days has more to do with this weak dollar than anything else. Let’s see what comes of this pretty bearish dollar setup. The MACD is rolling over and heading courth, the RSI is weak. All good things for those who want stocks to go up.

Today’s Unusual Options Activity & What Stood Out