Many Bodies Buried Under That Water

With earnings next week, GoPro is seeing some excitement this morning as the stock gaps up mightily in high of an upgrade at Barclays. 

However, context matters, and the same people who are excited by this morning's gap higher have also likely been chopped to smithereens since last year, with the stock staging many zigs and zags without much to shows for it. 

From a larger technical and psychological perspective about markets, it is worth remembering how many "dead bodies," or trapped longs, remain in GoPro from late-last year, when the stock was seen as a potentially hot Christmas play. Obviously, that these did not pan out. And now there are plenty or former steadfast GoPro bulls who are likely afraid to put their hands near the hot stove again. Moreover, those who did not capitulate and are still long are not looking to make a big score anymore, but rather simply to recoup the losses in some form (this is a basic tenet of the concept of "overhead supply," which I frequently discuss). 

Simply put, GPRO likely needs to clear and hold over $60 to sustain something more than another one-off, spirited, short-lived bounce.  

Context is important in markets, and cheering any given rally without it amounts to driving a car without rear and side view mirrors. 

As for the market at-large, we still have a grind higher going. I scaled some gains in FB INCY longs earlier this morning, inside Market Chess Subscription Services, and have my eye on a few more setups depending how the rest of the morning unfolds.