Tuesday, December 16, 2014

GPRO

Anyone with half a brain could see that $GPRO was an undersupplied stock that went parabolic. The 3D printing sectors, the potash companies, $CROX are just a few other examples from the post-crisis period that come to mind.  These are great names to ride up as the mania over a breakthrough, category killer or multi-purpose product spreads to those who comprise the final phase of accumulation (i.e. the greater fool buying the topping pattern).  In this case the subsequent resistance was breathtakingly precise and anyone who shorted this most simple, classic pattern deserves to brag about it come year-end attribution.  Problem is, there won't be many seeing how such a paltry proportion of meaningful investors can play the short side. $SPY $DDD $POT