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
, along with its subsidiaries, is engaged in electronic manufacturing services for original equipment manufacturers, and also manufactures keyboards and other input devices. This stock is trading up 14% at $13.00 in recent trading.
Today's Volume: 400,000
Average Volume: 118,826
Volume % Change: 480%
Shares of KTCC are ripping higher today after it reported third-quarter EPS of 32 cents per share, versus 7 cents per share reported last year. Revenue for the quarter came in at $95.5 million from $63.4 million last year. The company sees fourth quarter EPS of 31 to 37 cents per share and revenues of $93 to $98 million.
From a technical perspective, KTCC is ripping higher here on monster volume, and this move has pushed the stock into breakout territory since its trending above some near-term overhead resistance at $11.90 to $12.
Traders should continue to look for long-biased trades in KTCC if it can manage to close near its daily highs today, and continue to trend above $12. If we continue to see that action, then look for KTCC to make a run at tagging its next significant overhead resistance level at $17.50 in the near future.
True Religion Apparel
True Religion Apparel
designs, markets, sells and distributes premium fashion apparel, centered on its core denim products using the brand name True Religion Brand Jeans. This stock is trading up 5.9% at $29.54 in recent trading.
Today's Volume: 1.2 million
Average Volume: 556,992
Volume % Change: 291%
Shares of TRLG are moving notably higher today after the company said first quarter net income jumped 16% as it opened new stores and sales at its established stores improved. The company also announced a dividend and authorized a $30 million share repurchase program.
From a technical perspective, TRLG is ripping higher here and is now trading right beneath its 200-day moving average of $30.69 on monster volume. This move has pushed the stock well into its mid-February gap-down from over $36 to around $29.
Traders should now look for long-biased trades if TRLG can manage to sustain a move or close back above its 200-day with high-volume. Look for volume on that move that's near or well above 556,992 shares. If we get that action, then I expect TRLG to continue to fill that gap and possibly get back to $36.
Keep in mind that it's important for TRLG to maintain a trend above its 200-day with strong upside volume flows, to raise the probability of filling the rest of the gap.
Wright Medical Group
Wright Medical Group
is a global orthopedic medical device company specializing in the design, manufacture and marketing of devices and biologic products for extremity, hip and knee repair and reconstruction. This stock is trading up 8.7% at $20.38 in recent trading.
Today's Volume: 944,000
Average Volume: 305,258
Volume % Change: 274%
Shares of WMGI are soaring today after the company said net income jumped around 28% to $4.6 million, or 12 cents per share, versus net income of $3.6 million, or 9 cents per share, in the first quarter of 2011.
From a technical perspective, WMGI is soaring today on monster volume and the stock has started to move into breakout territory with shares trending above some near-term overhead resistance at $19.87.
Traders should continue to look for long-biased trades in WMGI if it can manage to close near its daily highs, and maintain its trend above $19.87 with strong upside volume flows. I would consider any upside volume day that registers near or above 305,258 shares as bullish. If we continue to see that action, look for WMGI to tag its next significant overhead resistance levels at $21 to $22 in the near future.
is a medical device company. NuVasive focuses on developing minimally disruptive surgical products and procedures for the spine. This stock is trading up 2.8% at $20.98 in recent trading.
Today's Volume: 1.4 million
Average Volume: 676,631
Volume % Change: 143%
Shares of NUVA are trending higher today after the company reported better-than-expected first quarter revenue of $151.9 million, or a 22% rise from the same period last year on Tuesday.
From a technical perspective, NUVA is continuing to see buying momentum here after the stock gapped up huge off earnings on Tuesday. That gap up on Tuesday came with monster volume, and volume today is also well above its average action.
Traders should now look for long-biased trades if NUVA can manage to close near its daily highs, and maintain its uptrend above its gap-day low of $19. If we continue to see that action, then NUVA can easily hit its next significant overhead resistance levels at $22.50 to $24.50.
That said, I would consider short-biased trades if NUVA moves below $19 with heavy volume.
provides automated consumer financial services through its network of automated teller machines and multi-function financial services kiosks. This stock is trading up 3% at $29.62 in recent trading.
Today's Volume: 582,000
Average Volume: 371,463
Volume % Change: 115%
Shares of CATM are moving notably higher today after analysts at Credit Suisse upped their price target to $32 per share and maintained an outperform rating on the stock.
From a technical perspective, CATM is moving sharply higher here after the stock gapped up big on Tuesday. This move has pushed CATM into breakout territory now that the stock has taken out some past overhead resistance at $28.50 to $28.74 with strong volume.
Traders should continue to look for long-biased traders if CATM can manage to close near its daily highs, and continue to tend above those key breakout levels with strong upside volume flows. I would consider any upside volume day that registers near or above 371,463 shares as bullish. If we continue to see this action, then CATM can easily trade into the mid-$30s in the near future.
I would look for short-biased trades only if CATM moves back below its gap low of $27.50 with high-volume.
is a provider of navigation, communication and information devices and applications, which are enabled by global positioning system technology. This stock is trading up 3.9% at $49.37 in recent trading.
Today's Volume: 2.5 million
Average Volume: 946,447
Volume % Change: 214%
Shares of GRMN are trending higher today after the company beat Wall Street profit estimates as demand jumped for its outdoor and fitness GPS products and it posted a surprise increase in sales of its personal navigation devices.
From a technical perspective, GRMN is surging higher here and flirting with a major breakout trade after the stock briefly moved above some past overhead resistance at $49.93 with high-volume. At last check, GRMN has hit an intraday high of $50.67 and volume is well above its three-month average action.
Traders should now consider long-biased trades as long as GRMN is trending above $49.93 to $50.67 with strong volume.
is an externally managed, non-diversified closed-end management investment company. This stock is trading up 6.5% at $18.91 in recent trading.
Today's Volume: 996,000
Average Volume: 796,434
Volume % Change: 108%
Shares of GSVC are skyrocketing today after Ascendiant Capital initiated coverage on the stock with a buy rating and a $20 price target. The analyst said GSVC's two largest investments are Twitter and Facebook, and the upcoming IPO for Facebook could be a catalyst to drive the stock higher if Facebook's valuation is above $110 billion.
From a technical perspective, GSVC is soaring here on above average volume, and the stock is quickly moving within range of a major breakout trade. That trade will hit once GSVC takes out some past overhead resistance at $20.39 to $20.89 with high-volume.
Traders should now look for long-biased trades off a sustained move or close above those levels on volume that's near or well above 796,434 shares. If we get that action soon, then GSVC will be trading in all-time high territory and the stock could easily hit $25 or higher very quickly.
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.