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.
2012 Stock Predictions and Outlook
is a provider of carrier-class voice over Internet protocol (VoIP) and convergence solutions for fixed and wireless communication service providers. The stock is trading up 6.6% at $12.77 in recent trading.
Today's Volume: 234,000
Average Volume: 68,255
Volume % Change: 346%
From a technical standpoint, CALL is bouncing big off of its 50-day
of $11.63 on big volume. Traders should now watch for a sustained move and close either near or above today's high of $13.23.
If we close near today's highs, then look for CALL to break out above some near-term
at $13.60 to $13.68. A
and close over those levels should set this stock up to trend back toward its next significant overhead resistance levels at $16.95 in the near future.
develops, implements and offers environmental technologies and provides equipment and specialty chemicals that enable coal-fueled power plants to meet emissions regulations, enhance existing air pollution control equipment. The stock is trading up 10.8% at $22.15 in recent trading.
Today's Volume: 153,000
Average Volume: 83,400
Volume % Change: 333%
, ADES is
today now that the stock has cleared some past overhead resistance at $20.97 on heavy volume. As long as ADES can hold above $20.97 at the close today, and finish near the daily highs, then this stock should set up to trend back toward its March high of $24.92.
( ZIP) operates a car sharing network, providing over 400,000 members with self-service vehicles that are located in reserved parking spaces throughout the neighborhoods where they live and work. The stock is trading up 4.5% at $14.89 in recent trading.
Today's Volume: 567,000
Average Volume: 464,602
Volume % Change: 188%
This stock is moving nicely to the upside today after Oppenheimer said that the recent share weakness was related to short positions initiated by general partners at Benchmark Capital as a hedge. Oppenheimer reiterated an outperform rating on the stock.
From a technical standpoint, shares of ZIP are bouncing big off of extremely oversold levels since the stock just dropped from its November high of $21.41 to a recent low of $12.04. The next buy point on ZIP will trigger once the stock clears $16 on high-volume.
Traders should look for a sustained move over $16 on volume that's near or above 464,602 shares. If we get that move, look to add to any long positions once ZIP takes out its 50-day at $16.94 with heavy volume.
Zipcar was featured earlier this month in "
(MAPP) is focuses on the development and commercialization of inhalation therapies for patients suffering from migraine. This stock is trading up 3.8% at $13.98 in recent trading.
Today's Volume: 82,000
Average Volume: 105,917
Volume % Change: 100%
From a technical standpoint, MAPP is quickly approaching its 50-day
today at $14.04 on decent volume. Market players should watch for a sustained move and close on high-volume above $14.04 and then $14.72 (its 200-day) to signal that this stock wants to trend much higher.
If we get a high-volume move and close above those levels, then look for MAPP to challenge its October high of $16.19 in the near future.
( SSRX) is a fully integrated biotechnology company focused on research and development, manufacturing and marketing capabilities focusing on bio-pharmaceutical products. This stock is trading up 4.7% at $10.06 in recent trading.
Today's Volume: 223,000
Average Volume: 69,419
Volume % Change: 754%
From a technical standpoint, SSRX is bouncing big off its
of $9.50 on monster volume. This is clearly an oversold snapback rally since shares of SSRX just dropped from its December high of $13.41.
Traders should now look for the next buy point to trigger if SSRX can sustain a move and close above today's high of $10.16 with volume. If we see that action, then look for SSRX to make a run at $11.48 (its 50-day) in the near future.
( INHX) is a biopharmaceutical company focused on the development of differentiated anti-infective products to prevent or treat serious infections. This stock is trading up 8.5% at $11.33 in recent trading.
Today's Volume: 2,977,000
Average Volume: 2,627,890
Volume % Change: 115%
This stock is soaring today after Canaccord said it would be aggressive buyers of INHX due to the overreaction in shares following
PSI-938 clinical developments. Canaccord rated the stock a buy with a $22 price target.
From a technical standpoint, INHX is starting to trend back above its gap down day high of $10.45 on heavy volume today. Traders should now watch for a sustained high-volume move and close above $10.45 to signal that this stock wants to continue to fill the gap back towards $14.
Keep in mind that this stock just bounced big off its pre-market low of near $5 from that huge gap down day last week. That's an over 100% run now for INHX, so profit-taking could easily hit this stock at any moment.
Inhibitex shows up on a list of
in the most recently reported quarter and is one of
is a commercial stage biopharmaceutical company, engaged in developing and commercializing therapies with a focus primarily in the areas of hematology-oncology and urology. This stock is trading up 4.2% at $15.12 in recent trading
Today's Volume: 1.1 million
Average Volume: 1.3 million
Volume % Change: 65%
From a technical standpoint, SPPI is starting to
now that the stock is flirting with some near-term overhead resistance at $15.09 on solid volume. Market players should now watch for sustained high-volume move and close over $15.09 to signal that this stock wants to move higher in the near future.
If we get that action, I would keep a long bias on this stock and look to play it for more upside as long as we stay above $15.09, within a few percentage points.
is a provider of solutions that enable enterprises and security organizations to extract insight from interactions, transactions and surveillance. This stock is trading up 1.6% at $32.41 in recent trading
Today's Volume: 465,000
Average Volume: 226,569
Volume % Change: 333%
From a technical standpoint, NICE is starting to catch a bid today on heavy volume off its recent low of $31.26. Market players should now look for this stock to continue its uptrend towards its 50-day moving average of $33.92 and 200-day of $34.03, as long as $31.26 holds as the near-term low.
Shares of NICE recently had a huge volume down day of 716,500 shares. That big volume down day might have marked a near-term bottom in the stock, again, as long as $31.26 holds.
To see more stocks rising on unusual volume, including
Buffalo Wild Wings
, 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.