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.
With that in mind, let's take a look at
owns, operates, develops and acquires crude oil and refined products logistics assets. This stock is trading up 2% at $43.00 in recent trading.
Today's Volume: 57,000
Average Volume: 70,627
Volume % Change: 160%
From a technical perspective, TLLP is bouncing modestly here right off some near-term support at $42 with decent volume. This move is quickly pushing TLLP within range of triggering a breakout trade. That trade will hit once TLLP takes out some near-term overhead resistance at $43.98 with high volume.
Traders should now look for long-biased trades in TLLP if $42 holds, and then if we get a sustained move or close above $43.98 with volume that's near or above 70,627 shares. If that breakout triggers soon, then look for TLLP to head north of $45.
Keep in mind that any move above $43.98 will push TLLP into all-time high territory, which is bullish technical price action.
Sunoco Logistics Partners
Sunoco Logistics Partners
is engaged in the transport, terminalling and storage of refined products and crude oil and in the purchase and sale of crude oil. This stock is trading up 4.1% at $46.50 in recent trading.
Today's Volume: 167,000
Average Volume: 180,586
Volume % Change: 200%
Shares of SXL are moving higher today after Robert W. Baird initiated coverage on this stock with an outperform rating and a $53 price target.
From a technical perspective, SXL is spiking higher here with decent volume, and it's started to break out above some near-term overhead resistance $44.99.
Traders should now look for long-biased trades in SXL as long as it's trending above today's low of $44.54 with strong upside volume flows. I would consider any upside volume day that registers near or above 180,586 shares as bullish. If SXL can maintain that trend, then this stock has a great chance of hitting $50 in the near future.
That said, SXL has entered overbought territory since its current relative strength index is 82.18. If SXL fails to hold this breakout, then I would avoid it or look for short-biased trades if it moves back below some major near-term support at $43.27 to $42.
is a medical device company engaged in the design, development, sales and marketing of implantable medical devices that provide a unique therapy for the treatment of refractory epilepsy and treatment-resistant depression. This stock is trading up 4.3% at $48.36 in recent trading.
Today's Volume: 508,000
Average Volume: 262,389
Volume % Change: 412%
Shares of CYBX are ripping higher today after Canaccord Genuity upgraded the stock from a hold to buy rating, and raised its price target from $34 to $56.
From a technical perspective, CYBX is continuing to trend higher here after the stock gapped up huge on earnings yesterday with big volume from $45 to $49.89. This move today has so far held yesterday's low of $46.26 and volume is tracking in strong.
Traders should now look for long-biased trades as long as CYBX is trending above $46.26, and then once it breaks out above $49.89 with high volume. Look for a sustained move or close above $49.89 with volume that's near or above 262,389 shares. If that breakout triggers soon, then look for CYBX to trend well north of $50.
Keep in mind that any move above $49.89 will push CYBX into all-time high territory, which is bullish technical price action.
is a medical device company that markets its robotic arm solution and orthopedic implants for orthopedic procedures called MAKOplasty. This stock is trading up 8.8% at $16.93 in recent trading.
Today's Volume: 2.7 million
Average Volume: 1.95 million
Volume % Change: 174%
Shares of MAKO are skyrocketing today after British orthopedic device maker Corin said it had made significant deliveries to MAKO in the first half of 2012.
From a technical perspective, MAKO is ripping higher here and flirting with its 50-day moving average of $17.12 with monster volume. This move is coming after MAKO recently hit a low of $11.99 after gapping down from around $25 to $13.41 with heavy volume. At last check, MAKO has hit an intraday high of $17.82 but has subsequently pulled back to around $16.93.
Traders should now look for long-biased trades in MAKO as long as it's trending above its 50-day at $17.12 with strong upside volume flows. I would consider any upside volume day that registers near or above 1.95 million shares as bullish. If MAKO can sustain a move above its 50-day, then this stock has a great chance to re-fill a larger chunk of that previous gap down zone.
operates as a specialty retailer in the United States and Canada. This stock is trading up 3% at $56.65 in recent trading.
Today's Volume: 506,000
Average Volume: 689,126
Volume % Change: 50%
From a technical perspective, SHLD is bouncing hard here right off its 200-day moving average of $55.02 with decent volume. This move is quickly pushing SHLD within range of triggering a major breakout trade. That trade will hit once SHLD takes out some near-term overhead resistance at $56.89 with high volume.
Traders should now look for long-biased trades in SHLD once it sustains a move or close above $56.89 with volume that's near or above 689,126 shares. At last check, SHLD has hit an intraday high of $56.86 and volume is tracking in very close to its three-month average volume. If that breakout triggers soon, then SHLD has an excellent chance of re-testing and possibly taking out its next major overhead resistance levels at $61 to $62.95. It's possible that SHLD could even hit $65.70 if that breakout triggers with big volume. Traders should use the 200-day as near-term support, or just below the 50-day near $53.67.
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.