GoPro (GPRO) broke out of a volatility squeeze today. Can it go another 20%? (July 11, 2016)
GPRO
GoPro ( NASDAQ:GPRO ). In this video I just want to point out this squeeze. This stock has been absolutely crushed since it peaked here in 2014. As I’ve said many times, “Guys, they make cameras. That’s it, they’re not a media company. They make cameras.” So I think from $90.00 down to 9.00 or so, is probably enough. They report earnings on the 19th, that’s next week, right? We’ve got this thing in a little volatility squeeze. High volume. I didn’t see any real news. High short interest, almost 27 percent of the float is short.
Here’s what I think is happening: I think the shorts are scrambling to get the heck out of this stock before earnings. And when you think about it, I mean seriously, if you’re short how stupid do you feel right now? If you’ve been short from the top then great, then Dude take your money and run, do the Steve Miller trade. But if you’re short now, really? What edge do you have? Why on earth would you be shorting a $12.00 stock now, after it’s already gone down this much? Is it an autopilot camera where somebody’s going to die because they’re watching Happy Potter on the camera and they run into a coral reef or something, or slam their surfboard into a whale?
The bottom line is, this stock is not going down. And I’m not a huge GoPro ( NASDAQ:GPRO ) fan, you know that if you’re familiar with my analysis for any length of time. I’ve been the one that’s yipping about this being a camera company, forever. But I’m looking at this, this is a squeeze stock. I think this stock could certainly move, I’ll say it, another 20 percent, if this is indeed a squeeze. So what I would suggest you do is, if you’re looking at this tomorrow morning, make sure you keep a trailing stop on the position. But I think this could be some fast money by just getting long. I have no idea what their earnings are going to be. I just know that this looks more like a bottom than an opportunity to short this stock. So make sure you’re keeping a trailing stop. With this kind of move, up 13 percent in a day, something is going on here and I don’t think it’s a bad idea to be there.
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