1. Cody Willard obviously got folks thinking with his columnist conversation comments on GoPro (GPRO) yesterday, as I received several emails on the stock in a short period of time. My view, which is based purely on technicals and not the company's product or fundamentals, is if you're going to play it long near current levels ($32.27 at Monday's close), do so against the September 11, $31.32, swing low.
The stock may very well be oversold. And perhaps their product deserves more credit than my simplistic view of the chart gives it. But the bottom line is the chart is ugly. Given the stock has declined 50% in roughly five weeks, a tradable bounce is obviously a logical expectation. But as we've discussed with Twitter (TWTR), the chart is badly broken and will need a lot of time to heal.
2. On the Monday evening edition of CNBC's Fast Money, well-known commentator and newsletter writer, Dennis Gartman, suggested the fracking sand companies might be worth looking at. Although he seemed to indicate the better-known frac-sand companies, U.S. Silica Holdings (SLCA), Hi-Crush Partners (HCLP) and Emerge Energy Services (EMES) were forming bases, I simply don't see it.
All three of the aforementioned stocks may in fact put in higher lows in the coming days (against August 24 swing lows), but that's a guess based on little more than wind direction. If you are going to dabble in these names, do so with the clear understanding that a break of the August 24 lows would likely trigger another vicious wave of selling.
If forced to roll the dice on one name, I'd look at SLCA. Unlike EMES and HCLP, SLCA is not currently trading near all-time lows. You also have the benefit of trading against a multi-year support level near $17. That said, SLCA's chart still looks crummy. And I'd be quick to abandon this stock beneath those late-August lows.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at firstname.lastname@example.org or posted to my twitter feed @ByrneRWS