I want you to look at GoPro ( NASDAQ:GPRO ), and here’s why: there’s no momentum in this stock other than down. Make no mistake. But, this was where support was before. Extend it out, this was where support was, again, in March, and this is where the stock is trading right now. You can say, “But Dan, but it’s a lower high here.” Why, yes it was, it was a lower high from here. But I’m not talking about what’s going to happen in October, November, December, or any of that, which is where this is actually relevant.
What I’m talking about is this; this is actually a low-risk buy point. What I mean by low-risk is, your idea, MY idea is that the stock is down at a level where buyers have come in before. It’s had massive selling here. You look at the big red spikes here; it’s had massive selling. It was up a bit, not a big deal, almost 2 percent today, which on any other day would be awesome. But every single stock, it seemed like, other than Netflix, was up and so I would kind of expect this to be up. I just like the fact that it’s down at support.
So what you do is, if the stock starts trading up tomorrow. Notice I said “if”, I really mean this, I was going to say, “I totally mean this,” but that would put me back about four decades into the San Fernando Valley. Look for a bounce here. If the stock bounces then you buy the stock, you keep a stop say underneath $36.00. This was the low, 36.38; shoot, put your stop at 36.25 or so. The idea is that the stock’s down here. Again, if it bounces, if it’s moving up tomorrow you take your trade, you’ve got your stop in and you figure out what you’re going to do with it when it gets up to about $50.00 or so.
Look, as strange as it sounds we’re coming into the holiday season already. Everybody wants to be a hero, everybody wants a hero, that’s what these guys are selling, and they’re doing drones too. How could it get better than drones and helmet cams? I can’t think of a way. So I think this could ultimately turn into an opportunity for you to be in GoPro ( NASDAQ:GPRO ). But I’m going to say it once again, as long as you have your stop defined; if you don’t, you’re out there on the wild frontier all alone, good luck to you.
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