Strong On High Volume: Alliance Data Systems (ADS)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Alliance Data Systems ( ADS) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Alliance Data Systems as such a stock due to the following factors:

  • ADS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $179.0 million.
  • ADS has traded 276,055 shares today.
  • ADS is trading at 14.29 times the normal volume for the stock at this time of day.
  • ADS is trading at a new high 4.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ADS with the Ticky from Trade-Ideas. See the FREE profile for ADS NOW at Trade-Ideas

If you liked this article you might like

Go Inside This Nike Experimental Fashion Installation

Adidas Is on Fire, and That Should Terrify Nike

How Much Cash Do You Have on You?: Cramer's 'Mad Money' Recap (Monday 8/14/17)

Alliance Data: Time to Get Back on Board

7 Potential New Targets for Activist Investor That Made a Killing on Whole Foods