Why should we keep an eye on unusually high traded volumes

Professional investors running mutual funds and hedge funds don’t just look at a stock’s fundamentals, they also track unusual volume. Often, when heavy volume hits a stock, it precedes a sharp increase in share price.

These types of investors like to get in well before a bigger trend, so it’s always prudent to scan the market for unusual volume activity across all sectors.

With that in mind, let’s take a look at six stocks that are showing up on unusual volume scans.

Alibaba Group

Thursday’s Volume: 37.09 million

Three-Month Average Volume: 9.46 million

Volume % Change: 280%

From a technical perspective, Alibaba Group (BABA) spiked notably higher here back above its 20-day moving average of $117.87 with monster upside volume. This high-volume bump to the upside is quickly pushing this stock within range of triggering a near-term breakout trade.

Aquinox Pharmaceuticals

Thursday’s Volume: 297,000

Three-Month Average Volume: 97,370

Volume % Change: 194%

From a technical perspective, Aquinox Pharmaceuticals (AQXP) ripped higher here right off its 20-day at $14.60 and back above its 50-day at $15.26 with strong upside volume. Market players should look for a continuation move higher in the short-term if this stock manages to clear Thursday’s intraday high of $16.05 with strong volume.

From a technical perspective, Sohu.com (SOHU) spiked sharply higher here and broke out above a number of near-term resistance levels with heavy upside volume flows. This rip to the upside is quickly pushing shares of Sohu.com within range of triggering another big breakout trade.

 Shopify

Thursday’s Volume: 7.97 million

Three-Month Average Volume: 1.63 million

Volume % Change: 427%

From a technical perspective, Shopify (SHOP) jumped higher here back above its 20-day at $84.33 with monster upside volume flows. This high-volume jump to the upside is quickly pushing shares of Shopify within range of triggering a major breakout trade.

Brixmor Property Group

Thursday’s Volume: 6.06 million

Three-Month Average Volume: 2.83 million

Volume % Change: 137%

From a technical perspective, Brixmor Property Group (BRX) jumped higher here right above its new 52-week low of $17.49 with heavy upside volume flows.

La Jolla Pharmaceuticals

Thursday’s Volume: 2.93 million

Three-Month Average Volume: 902,555

Volume % Change: 403%

From a technical perspective, La Jolla Pharmaceuticals (LJPC) exploded higher here right off its 20-day at $28.34 and broke out above a number of near-term resistance levels with monster upside volume flows. This high-volume rip to the upside is pushing this stock within range of triggering another near-term breakout trade.

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev