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. Many times when above average volume moves into 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.
Let's take a look at a
They are all recording volume in midday trading that is already at least 50% above their average trading volume for a full day.
is a producer and marketer of shell eggs in the U.S. The stock is trading up 4.5% at $35.81 in recent trading.
Today's Volume: 136,000
Average Volume: 80,323
Volume % Change: 328%
Shares of CALM are spiking higher today after the company said its second-quarter profit rose more than 50% due to strong demand for eggs and higher average selling prices. Cal-Maine's net income jumped to $23.3 million, or 97 cents per share, from $15.2 million, or 64 cents per share, last year.
, CALM has gapped up big today and broken out above some past overhead resistance levels at $34.83 to $34.86 on heavy volume. Traders should now watch for the
if CALM can sustain a move and close above $36.39 on high volume.
Look for volume that registers near or above 80,323 on a move over $36.39 to confirm that this stock wants to trend much higher in the near future.
operates the online marketplace for the vacation rental industry. The stock is trading up 10.6% at $22.01 in recent trading.
Today's Volume: 566,000
Average Volume: 276,675
Volume % Change: 245%
From a technical standpoint, AWAY is bouncing big today with volume off of some oversold conditions
. The current relative strength index (RSI) reading for AWAY is under 30, which indicates an oversold condition. Since the stock is bouncing here right around some previous support at $19.94, it's very possible that a bottom is being put in for AWAY.
2012 Stock Predictions and Outlook
Market players should watch for the next long trade to trigger if AWAY can take out $22 with volume. Look for volume that's near or above 276,675 shares on a sustained move and close over $22.
is an international supplier of software and e-commerce solutions to the insurance industry. The stock is trading up 7.4% at $22.85 in recent trading.
Today's Volume: 595,000
Average Volume: 459,247
Volume % Change: 80%
From a technical standpoint, EBIX has started to
now that the stock has traded above some past
at $21.89 on solid volume.
Market players should continue to look for long biased trades in EBIX as long as the stock closes above $21.89 and near the daily highs. If we get that action, then look for EBIX to re-test its next significant overhead resistance levels at $25 to $26 in the near future.
I also recently featured Ebix in "
is engaged in the small-loan consumer finance business, offering short-term small loans, medium-term larger loans, related credit insurance and ancillary products and services to individuals. This stock is trading up 0.7% at $73.33 in recent trading.
Today's Volume: 56,000
Average Volume: 130,127
Volume % Change: 66%
From a technical standpoint, WRLD, one of TheStreet Ratings'
, recently triggered a major breakout when it moved above $69.82 to $70.13 on solid volume. Traders should continue to look for long biased trades as long as WRLD remains above those breakout levels, and continues to lose near its daily highs.
If that pattern continues, then this stock should be well on its way toward $80 in the near future.
is a biopharmaceutical company engaged in the discovery, development and commercialization of therapeutic products aimed at treating patients with severe and life-threatening disease states. This stock is trading up 4.1% at $71.92 in recent trading.
Today's Volume: 751,000
Average Volume: 1.3 million
Volume % Change: 83%
From a technical standpoint, ALXN, one of TheStreet Ratings'
, is starting to trigger a major breakout today now that the stock has cleared some past overhead resistance levels of $69.72 and $70.42 with decent volume. Market players should look for continued upside in ALXN if the stock can finish today with volume near or above 1.3 million and the stock well above $70.42.
If this breakout is the real deal, then look for ALXN to run toward $80 in the near future.
provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction to earn undergraduate and graduate degrees, including doctoral degrees, and certain specialized non-degree diplomas in a range of disciplines. This stock is trading up 8.5% at $28.36 in recent trading.
Today's Volume: 121,000
Average Volume: 158,738
Volume % Change: 50%
From a technical standpoint, EDMC is very close to triggering a major breakout today if the stock can manage to sustain a move and close above $28.61 on strong volume.
Traders should look for volume at the close today that registers near or above 158,738 shares with the stock over $28.61 to signal that this stock wants to trend significantly higher. Shares of EDMC already hit $28.66 in intraday trading, so watch to see how it closes.
For more on Educational Management, check out "
( YRCWD), through its subsidiaries, provides various transportation services worldwide. This stock is trading up 10.3% at $10.31 in recent trading
Today's Volume: 67,000
Average Volume: 123,400
Volume % Change: 51%
From a technical standpoint, YRCWD is bouncing big today near some previous support levels near $9 to $9.22 on decent volume. The stock is also bouncing off of some oversold condition since its current relative strength index (RSI) reading is 38.
Market players should now watch for the next long trade to trigger if YRCWD can move above $11 to $11.41 with high-volume. A move above those levels with volume that's near or above 123,400 should set this stock up to re-test its 50-day
of $12.94 in the near-term.
To see more stocks rising on unusual volume, including
Research In Motion
( RIMM) and
, 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.