Where to cut the stem? and any suggestions for better care.
 

My Phal dropped its flowers, but a stem is peeking out see stem photo of a nub. I have posted a picture the nub is where the clip is. I already cut off the brown part of the stem but should I cut further down?
See roots photo-Also, last time I watered I noticed some of the roots deflated and turned brown. I do not prefer the medium that this plant is in. Is it possible to repot this plant or should I leave it alone?
If you look at the photo named pot of orchid you will notice that these roots look good. You will also notice that I had to cut two leaves off because they were yellow and about to fall off. I put some cinnamon on the orchid so it would not get infected. This picture is just to show that part of the plant. After seeing this pic should I do something to better care for this plant?

Thank you very much,
Katie

P.S. first time photo upload let me know if you cant open them.

It looks like your phal is potted in very tight moss. I would take all the moss out, clip the dead roots and repot in an airy mix. I would also probably cut the stem (my personal preference) and try to grow healthy roots. What is that thumb looking thing in your pot?
Joann

I can answer that one for you.
That is a clay like worm that changes color and lets you know whan a plant is dry. We sell them at the garden center where I work.

ha, ha that thumb looking thing is a water indicator that I picked up at a garden store. It obviously has not helped with this plant.
I should cut the whole stem even though the stem has a spike peeking out of the nub by the blue clip, which is seen in the first photo? The blue clip is at the second nub from the base of the plant. The pictures do not show this clearly.

Thank you for your advice