Chart of the Day: With Axon, It Pays to Follow the 'Big Money'
The stock finds support at a familiar spot.
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Axon Enterprise AXON has little news to move on over the next couple of months, and after that monster gain following earnings in August it is entitled to a rest. Big money players like to see a "calm" period for a stock like Axon, where they can quietly jump in and buy shares while hardly being noticed. It is at these time that the biggest and best gains are made, so following the big money is a prudent move.
Is that what is going on here, though, with the stock hovering over the 100-day moving average like a blanket on a cold rainy day? That is very likely the case. A volatile name like this is not going to attract big money players when the stock is breaking higher, that's not how it works.
Big money players wait for the dips and find where support lies. In this case that 100-day moving average has worked like a charm. The indicators are also starting to improve, momentum (stochastics) is starting to rise while money flow just went bullish.
Candles are pink, which means cautiously bearish on the GoNoGo composite of indicators but that does not really tell the story of a long-term bullish trend. It's likely a "dip buying" signal.
We like Axon in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long AXON.
