One in the Same After a Long Battle

As we work our way through the heart of afternoon trading, rotation seems to be the name of the game as small caps lag while other parts of the market attempt to benefit from inflows. 

On that note about rotation, it is interesting to see two long-time, high beta laggards finally sustain rallies. FitBit has been on a tear since early-May, turning on a dime when it dipped below $5 and is currently up nearly 14% as I write this to $7.22.

While FIT may be tough to chase long at the moment, there is little doubt that the rally has been rather impressive considering the countless times FIT would flash promising signs for hopeful longs in recent years, only to immediately relinquish those gains and return to respective lows. 

However, GoPro may be worth a look. For whichever reason, FIT and GPRO seem to be attached at the hip in terms of how the market views them, perhaps as pet toy products which have yet to be taken fully seriously by Wall Street. 

But with FIT surging, GPRO is suddenly looking ripe to clear its well-defined resistance, highlighted on the daily chart, below, in light blue. Holding over $6 now would be a good first step, but $6.20/$6.30 just above seems to be the more significant prior supply area to clear. 

To be sure, neither FIT nor GPRO are fully in the clear after their multi-year downtrends, though FIT is currently making a stronger technical case with its high buy volume surge above its 200-day moving average. Nonetheless, GPRO seems to have run out of excuses to break free from its own shackles, and it may finally have the confidence to do so indeed with its comrade in arms FIT taking the lead.