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 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.
Let's take a look at
. They are all recording volume in midday trading that is already at least 100% above their average trading volume for a full day.
is a global provider of learning and talent management solution delivered as software-as-a-service. The stock is trading up 9.6% at $17.76 in recent trading.
Today's Volume: 703,000
Average Volume: 185,530
Volume % Change: 729%
From a technical standpoint, this stock has
today above some past overhead resistance at $17.39 on monster volume.
Traders should now watch for a sustained move and close above the next major overhead resistance level at $19.65 to $20.19. A
above those levels should set this stock up to re-test $23.50. Look for volume on any move over $19.65 to $20.19 that's close to or above 185,530 shares.
CSOD shows up on a recent list of
is a global provider of on-demand employee spend management solutions. The company's software solutions enable organizations to control costs by automating the processes used to manage employee spending. The stock is trading up 11% at $52.20 in recent trading.
Today's Volume: 2,035,000
Average Volume: 528,960
Volume % Change: 662%
From a technical standpoint, this stock is starting to break out above some past overhead at $52.71 on huge volume. Market players should now watch for a sustained high-volume move and close above $52.71 to signal that this stock wants to go higher.
The volume is already there today, so look for a close over $52.71. If we get that action, then I expect this stock to re-test its May high of $58.19.
Concur was featured last month in "
Ultimate Software Group
Ultimate Software Group
is a provider of unified human capital management software-as-a-service solutions for global businesses. The stock is trading up 4% at $68.76 in recent trading.
Today's Volume: 607,000
Average Volume: 244,135
Volume % Change: 354%
, this is another stock that's triggering a major breakout today since shares have cleared some past
at $67.54 on monster volume. Traders should now watch for a sustained move and close above $67.54 to signal that this stock wants to trend much higher.
The volume is already there today, so look for this stock to close near its daily high of $71.97. That will set the stock up to print new all-time highs.
is a developer, owner and operator of casino entertainment facilities in local and regional markets. This stock is trading up 2.8% at $18.07 in recent trading.
Today's Volume: 548,000
Average Volume: 367,856
Volume % Change: 232%
From a technical standpoint, this stock is just starting to move back above its 50-day
of $17.61 on solid volume. Market players should now watch for a sustained high-volume move and close above that 50-day today.
The volume is already there today, so look for a close near the daily high of $18.20, or at least above $17.61. If we get action, then this stock should setup to challenge some more break out levels at its 200-day of $19.18 and $19.33.
Ameristar is one of the
( ARBA) is a provider of collaborative business commerce solutions. Ariba combines software-as-a-service technology with a Web-based community and a global network of trading partners. This stock is trading up 11.4% at $33.10 in recent trading.
Today's Volume: 1,204,000
Average Volume: 895,521
Volume % Change: 190%
This stock is ripping today after Roth Capital upgraded the stock from neutral to buy. Roth said the acquisition of
( SFSF) by
will increase focus on SaaS names, and it slapped a $36 price target on ARBA.
From a technical standpoint, this stock is gapping up big today on solid volume. This move in shares of ARBA today have taken the stock back above its 50-day and 200-day moving averages, which is bullish.
Traders should now watch for a sustained move and close above some near-term overhead resistance at $33.43 to $34.20 on high volume. Look for volume that's tracking in close to or above 895,521 shares in the coming days or weeks if we don't get that breakout trigger today.
is an externally managed, non-diversified closed-end management investment company. This stock is trading up 3.8% at $15.01 in recent trading
Today's Volume: 161,000
Average Volume: 105,656
Volume % Change: 183%
This stock is ripping higher today on solid volume after
wrote a favorable article on how the stock is an interesting play on promising IPOs. I also featured the stock in October in "
From a technical standpoint, this stock has started to trigger a big breakout today now that shares have cleared some overhead resistance at $15 on high volume. Market players should now watch for a sustained move and close today above $15. If we get that action, then I expect this stock to challenge its nearest overhead resistance level at $17.23 at the minimum.
is a global provider of on-demand communications lifecycle management, software and related services to a range of enterprises, including large and medium-sized businesses, and other organizations. This stock is trading up 4.5% at $14.02 in recent trading.
Today's Volume: 97,000
Average Volume: 111,214
Volume % Change: 106%
From a technical standpoint, this stock has started to challenge a big breakout now that shares are clearing some past overhead resistance at $13.93 on decent volume. Market players should now watch for a sustained move and close above $13.93 on high-volume.
Watch for volume at today's close that is tracking near or above 111,214, with the stock above $13.93. If we get that action, then I expect this stock to re-test $14.50 to $15.70 this week or earlier next week.
To see more stocks rising on unusual volume, including
, 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.
br/>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.