IMO, it's when you get too many scalp traders concentrating on a stock, things tend to go a bit wonky - and we've just seen that with AXE.
I like above-average solid volume with nice steady SP growth, which we saw from late June to August, rising from 70c to the mid $1. Sure, there are a few traders around, which is totally fine, but lots of buys are going into sticky hands, and there is a nice balance between the sticky hands and the traders.
But when too many scalpers get involved, you get these huge candles with massive wicks on the high side on just insane volume. On those days, I wonder if there are any longs or actual investors buying/selling or if it's just the pip traders pushing the prices up all on their own - selling to each other in some weird piranha feeding frenzy. Then the price gets way too hot, and it has to retrace, and the speculators decide the short side is a better bet and scramble to find stock to borrow.
I'm looking forward to it all calming down a bit and a better balance between longs/traders returning.
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