US equity indexes closed very mixed, SPX -2pts (0.1%) at 4459. Nasdaq comp' -1.2%. Dow +0.7%. The Transports settled +1.7%. R2K +0.4%.
SPX - daily
VIX - daily
Summary
US equities saw a day of moderate chop, although the Nasdaq was broadly lower, largely due to Netflix impacting a swarm of 'streaming' stocks. Volatility was itself subdued, the VIX settling -4.9% to 20.32
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Earnings don't matter
Netflix stock was effectively nuked on Wednesday, after lousy Q1 subscriber data, as the US/global consumer is increasingly cash-strapped. For now, few of the mainstream cheerleaders are willing to say that publicly... but that will change by early summer.
NFLX, monthly
Netflix settled the day -$122.42 (35.1%) to $226.19. Even before today though, the stock was m/t bearish, having collapsed from the Nov'2021 high of $700.99. Next support - as seen on the monthly chart, is key price threshold of the $124s, which looks realistic in June.
Just six months ago, the Cramer deemed that 'earnings don't matter'...
Video - Oct'20th 2021
Indeed, its six months to the day that Cramer did a 'Mad Money' show where he highlighted the 'Magnificent Seven' of NFLX, PTON, ROKU, SQ, PYPL, ZM, and TSLA.
Since that time, six have been nuked. The only one holding together is Tesla.
NFLX $625.14 > $226.19 -63.8%
PTON $90.65 > $21.77 -76.0%
ROKU $338.95 > $109.57 -67.7%
SQ $255.35 > $114.52 -55.1%
PYPL $258.36 > $94.90 -63.3%
ZM $275.71 > $103.70 -62.9%
TSLA $865.80 > $977.20 +12.9%
Cramer has a job on mainstream TV, and neither YOU, or yours truly doesn't, but then we're not one of the 'smart guys'.
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Goodnight
from London
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