DELAFIELD, Wis. (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. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
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Major moves in volume can signal unusual activity, such as insider buying or selling -- 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.
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With that in mind, let's take a look at several stocks rising on unusual volume today.
Home Properties
Home Properties (HME) is a real estate investment trust that owns, operates, acquires, develops and rehabilitates apartment communities mainly in selected Northeast and Mid-Atlantic regions of the U.S. This stock closed up 4.6% at $55.49 in Wednesday's trading session.
Wednesday's Volume: 1.55 million
Three-Month Average Volume: 389,694
Volume % Change: 285%
From a technical perspective, HME ripped sharply higher here right off some near-term support at $52.39 with strong upside volume. This stock has been downtrending over the last month and change, with shares falling from its high of $60.88 to its low of $52.39. During that move, shares of HME have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the spike higher on Wednesday in HME has now moved the stock out of its downtrend, and it's pushed shares within range of triggering a near-term breakout trade. That trade will hit if HME manages to take out some near-term overhead resistance levels at $56.17 to its 50-day moving average of $56.77 with high volume.
Traders should now look for long-biased trades in HME as long as it's trending above $54 or $53 and then once it sustains a move or close above those breakout levels with volume that this near or above 398,694 shares. If that breakout hits soon, then HME will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $60.13 to $60.88. Any high-volume move above $60.88 will then give HME a chance to tag $63 to $64.
Apollo Global Management
Apollo Global Management (APO) is an alternative asset management company. This stock closed up 2.1% at $30.02 in Wednesday's trading session.
Wednesday's Volume: 2.19 million
Three-Month Average Volume: 1.01 million
Volume % Change: 117%
From a technical perspective, APO
Traders should now look for long-biased trades in APO as long as it's trending above Wednesday's low of $16.41 or above more support at $16.10, and then once it sustains a move or close above its 52-week high at $18.28 with volume that hits near or above 247,612 shares. If that breakout hits soon, then SWIR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $22 to $25.
To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
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