PRE MARKET

NFLX nice gap to new highs on big increase in subscribers and higher guidance. Other movers to upside are LMT, JNJ, UNH.

Movers to the downside are HOG, GS, SCSS, ETH, ERIC.

Futures are flat.

On radio yesterday, we mentioned how tight recent action in ENERGY has been TO THE DOWNSIDE. We noted how energy etfs have created a very tight channel during this bear phase. We are watching to see if the channel can be broken to the upside. We are not predicting it. The fact is the next move can be down. We just know it is a very unloved, very under-owned group. When a technical set-up shows up, we sit in our seat and watch. When you have a chance, check out the weekly charts on OIH, XLE, XOP and see what we are seeing. Again, the next move can be down. We are just making you aware of a great channel to play off of if things change.