Netflix (NFLX) reported better than expected earnings and guided Q1 earnings higher. Its stock surged 11.5% higher and is leading tech stock rally. Both the S&P 500 and the Nasdaq Composite are both making record highs 4 days in a row. In the last 1 year QQQ, SPY and DIA are up 48%, 22% and 13% respectively. These kind of big moves will likely usher in corrections, especially in tech stocks. In the next 2 weeks, major tech stocks will be releasing earnings, regardless good or bad reports, sell on news will likely be course of action. It is time to be cautious. Both the Nasdaq 100 and S&P 500 Fear Gauges VXN and VXX are both stable today in the face of a big up market, these are warnings of an impending sell off. The risks the market is facing immediately are reports from TSLA, IBM and LRCX's earning reports later today.
Bitcoin recovered above $40000 from a recent low near $38500. This should help to stabilize the recent sharp drop in Bitcoin related stocks.
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