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.
Research In Motion
Research In Motion
( RIMM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. This stock is trading up 8.9% at $15.76 in recent trading.
Today's Volume: 20 million
Average Volume: 22.8 million
Volume % Change: 100%
From a technical standpoint, RIMM is starting to break out today now that the stock is moving above some near-term overhead resistance at $15 on decent volume. If shares of RIMM can manage to sustain a high-volume move and close above $15 and close near the daily highs, then this stock should setup to re-test its 50-day moving average of $17.33 in the near future.
A high-volume move and close above $17.33 should setup RIMM to trade back into the $20s.
Research In Motion, which shows up on a recent list of
, was featured recently in "
" and "
, together with its subsidiaries, is a global children's publishing, education and media company. Scholastic is a publisher and distributor of children's books and a provider of educational technology products and related services. The stock is trading up 4.1% at $31.20 in recent trading.
Today's Volume: 156,000
Average Volume: 164,114
Volume % Change: 126%
, SCHL has started to break out today above some near-term overhead
at $30 to $31 a share on decent volume.
Market players should now watch for the
if SCHL can take out $31.65 with heavy volume. Look for a volume move over $31.65 that registers near or above 164,114 shares. If we get that action, then look for SCHL to re-test its next significant overhead resistance level at $40.
is an integrated renewable products company, offers renewable compounds for a variety of markets. The stock is trading up 5.1% at $12.13 in recent trading.
Today's Volume: 397,000
Average Volume: 258,139
Volume % Change: 273%
From a technical standpoint, AMRS has started to trigger a breakout trade today now that this stock is moving above some near-term overhead resistance at $11.35 to $11.60 a share on big volume.
Traders should now watch for the next breakout trade to trigger once AMRS takes out $12.52 to $12.79 (its 50-day
) with volume. A
and close above those levels should set up AMRS to trade up towards $14 to $16.
Home Inns & Hotels Management
Home Inns & Hotels Management
is an economy hotel chain in the People's Republic of China. The stock is trading up 5% at $27.08 in recent trading.
Today's Volume: 404,000
Average Volume: 446,388
Volume % Change: 170%
, HMIN has started to bounce big today off of some previous support levels near $25. Market players should now watch for a
to trigger if HMIN can manage to sustain a high-volume move and close above some near-term overhead resistance at $28.25.
Look for volume that's near or above 446,388 shares if $28.25 is taken out soon. A sustained high-volume move and close over $28.25 should setup HMIN to re-test its 50-day
Jack in the Box
Jack in the Box
operates and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants. This stock is trading up 6.7% at $22.32 in recent trading.
Today's Volume: 419,000
Average Volume: 381,138
Volume % Change: 130%
From a technical standpoint, JACK is gapping up big today and breaking out above some major overhead resistance at $21.40 on heavy volume. That $21.40 level has marked major resistance for this stock for the past five months.
As long as JACK can manage to close above $21.40 and near its daily highs today, then this stock should set up to re-test its next significant overhead resistance level at $24.17 in the near future.
develops and markets intelligent bandwidth management solutions for fixed line and mobile network operators worldwide and provides services associated with such products. This stock is trading up 4.9% at $18.78 in recent trading.
Today's Volume: 66,000
Average Volume: 83,275
Volume % Change: 68%
From a technical standpoint, SCMR is starting to flirt with trading above its 50-day
today of $18.75. Market players should now look for long biased trades if SCMR can manage to sustain a high-volume move and close above $18.75.
Volume at last check is still below the daily average of 83,275, so look for volume to improve on any close over $18.75 today or in the near future. A
and close over $18.75 should setup SCMR to re-rest its 200-day moving average of $20.25.
is a medical device company that markets its advanced robotic arm solution and orthopedic implants for orthopedic procedures. This stock is trading up 12.5% at $28.36 in recent trading.
Today's Volume: 904,000
Average Volume: 978,519
Volume % Change: 91%
Shares of MAKO are ripping to the upside today after Summer Street upgraded the stock with a $35 price target citing growth of the company's robotic arm for joint replacement surgery. The firm thinks current levels are offering an attractive entry point and thinks that Mako could be an increasingly likely acquisition target.
2012 Stock Predictions and Outlook
From a technical standpoint, MAKO is starting to flirt with a near-term
if the stock can manage to sustain a high-volume move and close above $27.48. At last check, the stock is trading at $28.36 and volume is tracking pretty strong at around 70,000 shares short of its average daily volume.
If MAKO can manage to close near its daily highs, then look for this stock to re-test its 200-day moving average of $30.62 in the near future.
engages in the provision of satellite-based network solutions to government, communications service providers, commercial enterprises, and media and content broadcasters in the U.S., Europe, South America, Africa, the Middle East, and Asia. This stock is trading up 5.4% at $14.43 in recent trading.
Today's Volume: 93,500
Average Volume: 94,677
Volume % Change: 100%
From a technical standpoint, GCOM is flirting with a major breakout today if this stock can manage to sustain a high-volume move and close above some near-term overhead resistance at $14.62. A high-volume move and close over $14.62 should set this stock up to make a run at its
The reason a good percentage pop should happen for GCOM on a move over $14.62 is that that level has held as tough resistance for the past five months.
Globecomm is one of TheStreet Ratings'
is a neuromodulation company engaged in the design, development and commercialization of implantable medical devices that provide a therapy, vagus nerve stimulation therapy, for the treatment of refractory epilepsy and treatment-resistant depression. This stock is trading up 1.6% at $34.04 in recent trading.
Today's Volume: 183,000
Average Volume: 176,614
Volume % Change: 85%
Shares of CYBX are moving higher today after the company said the Food and Drug Administration has approved its re-designed AspireHC generator, which was the subject of a voluntary product withdrawal in August 2011.
From a technical standpoint, CYBX has flirted with a breakout today when the stock briefly traded above some near-term overhead resistance at $34.43 on decent volume. Market players should now watch for a sustained high-volume move and close above $34.43.
If we get that action, then look for CYBX to challenge a bigger breakout above $35.88. That $35.88 level is its
, so any high-volume move over that price could pop the stock sharply to the upside.
Cyberonics is one of TheStreet Ratings'
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.