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
volume for a full day.
( AMLN) is a biopharmaceutical company engaged in the discovery, development and commercialization of drug candidates for the treatment of diabetes, obesity and other diseases. The stock is trading up 17.55% at $14.27 in recent trading.
Today's Volume: 15.3 millionAverage Volume: 2.2 million
Volume % Change: 1015%
Shares of AMLN are soaring today after the Food and Drug Administration approved its once-a-week diabetes injection Bydureon.
From a technical standpoint, AMLN traded above some major past overhead resistance at $14.60 today for just a brief period. That $14.60 area is going to be key for AMLN since the stock hit a daily high today of $14.68 and then turned down.
The current relative strength index (RSI) reading for AMLN is 81.49, which indicates an extreme overbought condition. I would only look for more upside in AMLN in the near-term if the stock can close above $14.60.
Amylin shows up on a list of
for the most recently reported quarter.
is a worldwide provider of business intelligence software that enables companies to report, analyze and monitor the data stored across their enterprise. The stock is trading up 3.8% at $118.47 in recent trading.
Today's Volume: 538,000
Average Volume: 167,161
Volume % Change: 408%
Shares of MSTR are ripping higher today after the company reported record fourth quarter sales, even as earnings were cut in half due to sharply higher expenses. Most of those expenses were due to the hiring of employees and the spending on marketing costs to expand its worldwide sales force.
From a technical standpoint, MSTR has started to trigger a breakout trade today now that this stock has cleared some near-term overhead resistance at $116 on huge volume. Market players should continue to look for long biased trades as long as MSTR can close over $116 and near its daily highs of $121.51.
A reasonable target if we get a strong close is the 200-day moving average of $129.25.
MicroStrategy is one of
as of the most recently reported period.
is a holding company. Madison Gas and Electric Company is a wholly owned subsidiary of MGE Energy. The stock is trading up 2.3% at $46.28 in recent trading.
Today's Volume: 100,000
Average Volume: 60,797
Volume % Change: 121%
From a technical standpoint, MGEE is bouncing higher today right off its 50-day moving average of $44.63 on heavy volume. Any time a stock finds heavy volume buying interest near a key moving average like the 50-day, it should be considered a bullish move.
Market players should continue to look for upside in MGEE as long as the stock can stay above that 50-day. A more bullish breakout trade will trigger once MGEE takes out $47.85 with volume. Look for volume that's near or well above 60,797 shares.
MGE is one of TheStreet Ratings'
is a provider of unified solutions and a provider of telepresence, video, voice and infrastructure solutions based on open standards. This stock is trading up 3.8% at $20.43 in recent trading.
Today's Volume: 3.3 million
Average Volume: 2.7 million
Volume % Change: 89%
From a technical standpoint, PLCM is bouncing today strong off some previous support at around $19.41 with heavy volume. If PLCM can manage to close near its highs of the day, then traders should continue to look for more upside in the near-term.
Some possible targets are $21 to $23.05 (200-day). I would only look for short biased trades in PLCM if this stock moves below $19.41 on heavy volume.
Polycom shows up on a recent list of
designs, develops and manufactures customized equipment and process solutions used to develop and manufacture solar, nano and advanced electronic components, materials and coatings for research and industrial applications. This stock is trading up 5.8% at $14.21 in recent trading.
Today's Volume: 200,000
Average Volume: 135,256
Volume % Change: 87%
From a technical standpoint, CVV is starting to trigger a big breakout trade today now that the stock is moving above some near-term overhead resistance at $13.95 on
Market players should continue to look for long-biased trades in CVV as long as it can manage to close above $13.95 or near its daily highs of $14.54. If we get that close, then target a run towards $16 or possibly higher in the near future.
is an integrated medical device company. The products include implants, instruments and equipment for orthopedic surgery, neurosurgery and general surgery. This stock is trading up 2.6% at $29.98 in recent trading.
Today's Volume: 481,000
Average Volume: 429,932
Volume % Change: 67%
, IART has started to move above its 50-day
of $29.37 today on solid volume. This stock has just run up big in the past few weeks from a low of $23.09 to its current price of just under $30.
Traders should continue to look for long-biased trades in IART as long as this stock can manage to close above the 50-day today. If we get that action, some near-term targets are $32 to $32.60. Any future high-volume move over $32.60 should be considered very bullish for IART, since the next significant overhead resistance sits at over $38.
is an Internet subscription service streaming television shows and movies. This stock is trading up 1.83% at $125.62 in recent trading.
Today's Volume: 12.5 million
Average Volume: 8.4 million
Volume % Change: 92%
From a technical standpoint, NFLX is following through with more upside today above its most recent breakout level of $120.28. The move today above $125 is coming on strong volume that's well above its average volume of 8.36 million shares.
Market players should continue to look for long biased trades in NFLX as long as the stock can manage to close above $128.50 or near its daily highs of $129.48. If we get that action, then watch for NFLX to trend back towards its next significant overhead resistance at $137.88.
Keep in mind, that NFLX is starting to push into overbought territory since its relative strength index (RSI) reading is now 77. If you start to see breakout levels fails, then this stock could selloff and consolidate some of those recent gains from its November low of $62.37.
Netflix, one of TheStreet Ratings'
, shows up on lists of the
is an Internet subscription service streaming television shows and movies. This stock is trading up 2.6% at $20.76 in recent trading.
Today's Volume: 2.3 million
Average Volume: 1.98 million
Volume % Change: 54%
From a technical standpoint, CRUS is bouncing solidly today off some near-term support at $19.73 on heavy volume. As long as CRUS can continue to trend above $19.73 with strong upside volume trends, then this stock has a good chance of making a run at its recent high of $23.
That said, I would completely avoid this stock or look for short trades if it moves below $19.73 to $19.10 with high-volume. A move below those levels would setup CRUS to fill a gap back towards $17.
To see more stocks rising on unusual volume, including
(SNHY), 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.