WINDERMERE, Fla. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
Major moves in volume can signal unusual activity, such as
-- or buying or selling by "superinvestors."
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
With that in mind, let's take a look at
is a medical device company focused on developing minimally disruptive surgical products and procedures for the spine. This stock is trading up 9.4% at $13.85 in recent trading.
Today's Volume: 2,667,000
Average Volume: 805,328
Volume % Change: 491%
Shares of NUVA are skyrocketing today after the company reported a profit of $2.4 million in the current quarter versus a net loss of $67.6 million in the year-earlier quarter.
From a technical perspective, NUVA is ripping to the upside here right off some near-term support at $12.35 with monster upside volume. This move is quickly pushing NUVA within range of triggering a major breakout trade. That trade will hit once NUVA manages to take out some near-term overhead resistance at $14.72, and then once it takes out its gap down day high of $15.48 with high volume.
Traders should now look for long-biased trades in NUVA once it manages to sustain a move or close above those breakout levels with volume that hits near or above 805,328 shares. If that breakout triggers soon, then NUVA will setup to re-fill some of that massive gap down from earlier this month that started above $22. Some possible upside targets are its 200-day at $18.88 and its 50-day at $19.48.
Fortune Brands Home & Security
Fortune Brands Home & Security
is a home and security products company that competes in attractive long-term growth markets in its categories.. This stock is trading up 10.5% at $29.81 in recent trading.
Today's Volume: 2.9 million
Average Volume: 1.4 million
Volume % Change: 338%
Shares of FBHS are ripping to the upside today after the company posted sharply higher third quarter net income as the company benefited from an improving housing market, most notably for new construction.
From a technical perspective, FBHS is gapping hard to the upside here right around its 50-day moving average of $26.72 with above-average volume. This move has started to push FBHS into near-term breakout territory, since the stock has pushed above some resistance at $29.41.
Traders should now look for long-biased trades in FBHS as long as it's trending above $29.41 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 1.3 million shares as bullish. If FBHS can sustain that trend, then look for this stock to trend well north of $30 in the near future.
owns and provides containerships for charter. This stock is trading up 4.3% at $13.97 in recent trading.
Today's Volume: 689,000
Average Volume: 325,962
Volume % Change: 406%
From a technical perspective, CMRE is bouncing hard here right off some near-term support at $13.20 with above-average volume. This move has also started to push CMRE above its gap down day high at around $13.95. At last check, CMRE has hit an intraday high of $14 and volume is well above its three-month average action of 325,962 shares.
Traders should now look for long-biased trades in CMRE as long as it's trending above that gap down day high of $13.95, and then once it sustains a move or close back above its 200-day at $14.10 and its 50-day at $14.47 with volume that hits near or above 325,962 shares. If CMRE can trigger that move soon, then look for this stock to re-test or possibly take out its next major overhead resistance levels at $15.50 to $16.13.
is an integrated biopharmaceutical company, which discovers, invents, develops, manufactures and commercializes medicines for the treatment of serious medical conditions. This stock is trading up 5.7% at $161.83 in recent trading.
Today's Volume: 1.2 million
Average Volume: 731,583
Volume % Change: 219%
Shares of REGN are spiking higher today after the company reported third-quarter results that far exceeded Wall Street estimates as it won key new approvals for its eye drug Eylea and cancer drug Zaltrap.
From a technical perspective, REGN is ripping higher here right around its 50-day at $149.74 with above-average volume. This move is quickly pushing REGN within range of triggering a major breakout trade. That trade will hit once REGN manages to take out some near-term overhead resistance levels at $165 to $166.39 with high volume.
Traders should now look for long-biased traders in REGN as long as its trending above its 50-day, and then once it sustains a move or close above those breakout levels with volume that hits near or above 731,583 shares. If that breakout triggers soon, then look for REGN to trend well north of $170.
To see more stocks rising on unusual volume, check out the
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.