Volume is one of the two key indicators for a Technical Analyst. These analysts believe that stock volume precedes price and confirms stock price patterns. Analysts also believe that the reason volume spike is that large institutional buyers are making a move on the stock. Today we will analyze if volume on its own is enough to drive a stock higher or if volume combined with other factors are necessary for future price increase. Lets follow these two groups over the next month.
The following five $10+ NASDAQ stocks have the highest volume without looking at any other indicator.
All these stocks bought on 2/28/2013 – Portfolio UP 5.8% after 15 days (3/22/2013)
Anika Therapeutics (ANIK) – volume up 1560%
Boulder Brands (BDBD) – volume up 731%
Aixtron SE (AIXG) – volume up 491%
Babcock & Wilcox Company (BWC) – volume up 261%
Steiner Leisure Limited (STNR) – volume up 261%
The following five $10+ stocks have the highest volume for stocks with very strong patterns like New Highs, Cup with Handles, etc. – Portfolio UP 11.2% after 15 days (3/22/2013) with one stock up 36.44%
Chicago Bridge & Iron (CBI) – volume up 267%
Saia Inc (SAIA) – volume up 250%
Ocwen Financial Corp (OCN) – volume up 130%
Homeaway Inc. (AWAY) – volume up 75%
Shutterstock Inc. (SSTK) – volume up 71%
SUMMARY AS OF 3/4/2013
While we expect stocks that have huge increases in volume with a large green candlestick to produce continued growth, this is exceptional. We should note that the stocks with the larger volume increase without a perfect stock chart have improved 19% faster. Portfolio 1 is now at 4.6% and portfolio 2 has advanced 3.6%.
SUMMARY AS OF 3/8/2013
Both portfolios continue to advance. Portfolio 1 is now at 5.3% and portfolio 2 has advanced 4.2%. Pretty good for a week’s time.
SUMMARY AS OF 3/15/2013
As you would expect, the HUGE volume on 2/28/2013 together with a market that is mostly positive has provided continued growth for our portfolios. The one with the strongest volume but without a good chart have advanced 6.65% and the ones with a good chart and strong volume have advanced 9.07%.
SUMMARY AS OF 11/18/2013
Here is a summary after 8 months.
Anika Therapeutics (ANIK) – up 140%
Boulder Brands (BDBD) – up 60%
Aixtron SE (AIXG) – down 6.5%
Babcock & Wilcox Company (BWC) – up 17.5%
Steiner Leisure Limited (STNR) – up 16.3%
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