8 Stocks Soaring on Unusual Volume
WINDERMERE, Fla. (Stockpickr) -- Professional traders that run 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
-- 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.
>>Related
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8 Stocks Under $10 Moving Higher
Let's take a look at a
number of stocks rising on unusual volume today.
They are all recording volume in midday trading that is already at least 50% above their average trading volume for a full day.
GSV Capital
(GSVC)
This is an externally managed, non-diversified closed-end management investment company. The stock is trading up 5.4% at $19.52 in recent trading.
Today's Volume: 1,321,000
Average Volume: 209,915
Volume % Change: 585%
Shares of GSVC are soaring due to the company's stake in the upcoming IPO for
.
From a technical standpoint, GSVC has been on a tear recently running from $13 to its current price of around $19.50. Market players should now watch GSVC for a breakout trade if this stock can manage to clear $19.97 to $20 on high-volume. Look for a sustained high-volume move over those levels to signal that another big spike higher is coming soon. Keep in mind that GSVC is entering overbought territory since its relative strength index reading is now at 77. Due to that reading, I would only look for short-term long-biased trades if we break out soon over $20.
SolarWinds
(SWI) - Get Report
This company designs, develops, markets, sells and supports enterprise information technology infrastructure management software to IT professionals in organizations of all sizes. The stock is trading up 6.4% at $34.74 in recent trading.
Today's Volume: 2,140,000
Average Volume: 1,031,470
Volume % Change: 165%
From a technical standpoint, SWI has started to trigger a major breakout trade today now that this stock is clearing some near-term overhead resistance at $33.68 on monster volume. This move has now pushed SWI into all-time high territory, which is bullish price action. Traders should continue to look for long biased trades in SWI as long as it continues to trend above $33.68.
Constant Contact
(CTCT)
This is a provider of on-demand e-mail marketing, social media marketing, event marketing and online survey solutions for small organizations, including small businesses, associations and non-profits. The stock is trading up 15% at $30.10 in recent trading.
Today's Volume: 3,150,000
Average Volume: 518,777
Volume % Change: 586%
Shares of CTCT are soaring today after Barrington raised its target on the stock to $40 from $30 after the company reported stronger than expected fourth quarter results.
From a technical standpoint, CTCT triggered a major breakout trade today once the stock cleared some near-term overhead resistance at $27.67 on monster volume. Traders should now look for this stock to consolidate some of today's gains, before it can setup to make a run at its 2011 high of $36.33. The next major breakout trade for this stock will trigger once it takes out $32 with volume. Look for volume over that level that tracks in near or above 518,777 shares.
NetGear
(NTGR) - Get Report
This company is a global networking company that delivers products to commercial businesses, home users, and broadband service providers. This stock is trading up 7.6% at $43.06 in recent trading.
Today's Volume: 900,000
Average Volume: 332,018
Volume % Change: 160%
From a technical standpoint, this move in NTGR today now puts the stock within range of triggering a major breakout if it can manage to move above its all-time high of $45.31 with volume. Traders should watch for a sustained high-volume move and close over $45.31 to signal that NTGR wants to spike higher. Look for a volume move above that level that registers near or well above 332,018 shares. I would target a run up to $50 at the minimum, or possibly much higher if $45.31 is taken out soon with volume.
Spirit Airlines
(SAVE) - Get Report
This is an ultra low-cost, low-fare airline based in Fort Lauderdale, Fla. that provides travel opportunities principally to and from South Florida, the Caribbean and Latin America. This stock is trading up 6.3% at $19.22 in recent trading.
|
Today's Volume: 1,260,000
Average Volume: 425,584
Volume % Change: 172%
From a technical standpoint, SAVE recently triggered a major breakout trade once the stock took out some near-term overhead resistance at $17.48 with heavy volume. Market players should now wait for this stock to consolidate some of the recent gains since it's up from $13.90 to its current price of $19.22 in about a month. If SAVE can consolidate and continue to trend over $17.48, then I would keep looking for long-biased trades.
ABIOMED
(ABMD) - Get Report
This is a biotechnology company focused on the discovery, development and commercialization of therapeutics that may improve cancer treatment options for patients. This stock is trading up 7.2% at $20.63 in recent trading.
Today's Volume: 1,825,000
Average Volume: 334,140
Volume % Change: 495%
Shares of ABMD are ripping higher today after the company reported record revenue of $33.2 million and earnings of $2.9 million for the third quarter of fiscal 2012.
From a technical standpoint, ABMD is starting to flirt with a major breakout since the stock has moved above some near-term overhead resistance at $21.50 just briefly intraday on monster volume. At last check, ABMD has cooled off to its current price of $20.60, so traders should now watch for a close above $21.50 and its daily high of $21.92 on high-volume. Look for volume on a move in the near future over those levels that are near or above 334,140 shares. If we get that action, soon, then I would look for long biased trades to play the breakout.
Columbia Sportswear
(COLM) - Get Report
This company is engaged in the design, sourcing, marketing and distribution of outdoor apparel, footwear, accessories and equipment. This stock is trading up 4.2% at $49.93 in recent trading.
Today's Volume: 783,000
Average Volume: 212,861
Volume % Change: 240%
From a technical standpoint, COLM has started to trigger a big breakout trade today now that this stock has taken out some near-term overhead resistance at $48.57 on big volume. As long as this stock can continue to trend above that breakout level of $48.57, then it has a great chance of tagging its 200-day moving average of $54.20 in the very near future.
Changyou.com
(CYOU) - Get Report
This is an online game developer and operator in the People's Republic of China. This stock is trading up 5.1% at $29.04 in recent trading.
Today's Volume: 707,000
Average Volume: 264,184
Volume % Change: 164%
From a technical standpoint, CYOU has started to trigger a breakout trade today once the stock moved above some past overhead resistance at $27 on high-volume. Traders should continue to look for long biased trades as long as CYOU can close near its daily highs of $29.52. The next major breakout for CYOU will trigger once it takes out $30.53 with volume. If we get that action soon, then look for CYOU to re-test its 200-day moving average of $33.70. Keep in mind that long trades are now getting a bit more risky here since the current relative strength index reading is 81.
To see more stocks rising on unusual volume, check out the
Stocks Rising on Unusual Volume
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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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.
