High Tide for GoPro Bears

Against the backdrop of the "FANG" names dominating the QQQ ETF continuing to undergo pullbacks, we have long-term lagging plays like APRN GPRO FIT SNAP outperforming.

Out of those names, GoPro looks to be coming along ahead of them, in terms of GPRO holding above its 200-day simple moving average since Labor Day. 

GPRO remains a rather heavily-shorted stock. Frankly, shorts have been correct in the name for a good while, and they have not really faced much adversity. However, since early-August we have seen notable upticks in buy volume on GPRO's daily chart to compliment the price rally. 

And just this morning, GPRO came out of the gate hot in a mixed tape. 

Currently, on the 30-minute chart, below, GPRO is pulling in off morning highs and likely needs to hold $11.40 into the afternoon to keep its momentum going. Above, $11.70-$12 looks to be the next band of resistance for bulls to clear. 

Along with retail and energy, we are seeing some legitimate appetite for beaten-down plays in this market in favor of the obvious winners. Bulls likely need to see that type of rotation persist in order to avoid an all-out market pullback, which means keeping tabs on GPRO for continued improvements is a worthwhile endeavor even if you have no plans to trade the name.