Youtube will get into the movies rental business on Friday. The cost is $3.99 for a 48-hour viewing period. This is bad news for Netflix (NFLX), as Youtube will ultimately compete head-to-head with it. NFLX is currently below is 50 day MA and “resting” on a support at 50-51. We expect the support to be broken soon.

Intel and JPMorgan both reported good earnings today, but the market is selling off hard. I am reminded of the following market principles:

1. New is the best near the top and worst near the bottom.

2. The reaction to news matters far more than the news itself.

3. The stock market moves to discount the future, while earnings only reflect the past.

And Warren Bufffett’s trading rules:

1. Never lose money.

2. Never forget rule 1.