14Oct2:13 pmEST

In Massachusetts They Shoot from the Lip; In Tennessee from the Hip

From a business standpoint, seeing Smith & Wesson Brands, Inc. (SWBI, below on its daily chart) relocated its headquarters from Massachusetts to Tennessee, is almost assuredly a positive development for one of the nation's oldest and most recognizable firearms manufacturers. 

Technically, the stock has been tightly basing along its 200-day moving average (yellow line) for a good while now. And with firearms stocks enjoying the rally today, including RGR, I am looking for SWBI to make a push going forward. 

When firearms plays come into focus, there is always the temptation to extrapolate what is happening in the economic landscape as a reason for owning more firearms. Perhaps, for example, we have a looming energy and food crisis in America which will see a rise in demand for self-defense in good people, and a rise in demand for firearms in those who are either desperate or evil...or both. All of that remains to be seen, however. 

So in the here and now let us focus on the actual setups, which point to a tight consolidation and SWBI's tax advantages south of the Mason–Dixon line. 

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