Going with a Pro May Be the Next Move

In light of the moves we are seeing in long-term laggards which are suddenly surging, namely BABA YELP, even TWTR, the issue which, if any, will follow suit for comparable moves. 

To my eye, GoPro fits the bell as well as any of them. 

You are talking about a stock which has silenced even the cockiest of bulls in the name since October 2014, relentlessly pushing lower and destroying capital with in a ruthless manner. 

Interestingly, now that the stock has stopped going down since May of this year, the newfound resilience has been met with little fanfare. In fact, I suspect too many have been burned by the name to ever really trust it again. After all, the knee-jerk reaction was to associate GPRO as being a slam-dunk Christmas play in recent years, the quintessential high end holiday gift. Instead, those bulls found coal in their stocking, and not one of the good coals like Joy Global, but one of the ones which went bankrupt. 

So now that bullish sentiment has seemingly been soundly eradicated from the GPRO sphere, the stock is, naturally, acting much better. Stocks tend to bottom when apathy occurs, and it sure seems like there is a good deal of that for GPRO's stock these days, with those disgusted by the action likely already having cut and run earlier this year. 

Much like TWTR before its recent move, the daily chart for GPRO, below, shows a well-defined potential base bottom. The stock remans extremely heavily-shoted and is ripe for a vicious squeeze higher. 

I would trade against $14, below, to manage the thesis. But so far so good this morning. We have a similar ideas for Members on the radar, too.