Heavy-volume moves are clear signs of institutional action among stocks, which often result in buy and sell signals for the observant stock investor. And IBD's Stocks On The Move table offers investors the ability to pinpoint those companies.
The Stocks On The Move table is on the homepage of Investors.com, and it is continually updated throughout the stock market session. Subscribers can view up to 20 up stocks and 20 down stocks.
How To Buy And Sell Stocks With Stocks On The Move
When you click on a stock, you are taken to the quote page, which includes the IBD Ratings and a basic price and volume chart.
The quotes also include stock data such as 52-week high and low, number of shares outstanding and important fundamentals such as the most recent earnings percentage change and three-year EPS growth rate.
A list of the most recent IBD articles that mention the company is also included.
The ratings alone provide a good starting point to evaluate the stock and decide if it has enough strong qualities to warrant further analysis. The other parts of the quote page help you dig deeper.
Use the chart to study the stock's price and volume action. This requires some chart analysis on your part. Or, check out many of the recent IBD articles that include a chart analysis.
To the right of each stock, Stocks On The Move includes more research tools, including the IBD Stock Checkup. It offers data and a checklist to help investors better understand the stock's condition and fundamentals, and how the stock compares to its peers.
Click on the plus sign to add the stock to your IBD Lists. There are also links to the IBD MarketSurge research platform and IBD Leaderboard, if you subscribe to those premium products.
How To Buy And Sell Stocks With Volume Signals
Stocks On The Move is sorted by the percentage change in volume, highest to lowest. This is a critical number because it tells you how much more volume the stock is experiencing at the time compared with its average daily volume.
Let's say there's a stock on the table that's up 3% with a 260% volume increase at midday. That means that at the time you're viewing the data, volume is running 260% above the stock's 50-day average turnover.
Such heavy trading is a sure indication that institutional investors are actively trading the stock. If shares are rising, that's a sign that one or more fund managers are accumulating the stock. If the stock falls in heavy volume, consider it a sign that professional money managers are selling.
These signals are particularly important when they happen at key levels on a stock's chart, such as a rise above the 50-day moving average or to new highs after weeks of price consolidation. A big volume drop below the 50-day line is a bearish signal.
Recent Stock Movers In The Screen
On Tuesday, Eli Lilly and Embraer showed big upside volume for the session.
Drugmaker Eli Lilly that day was breaking out past an 889.36 cup-with-handle buy point. Volume was 40% above average that day, the minimum that a proper breakout should have.
Embraer was rebounding from the 10-week moving average as the stock found support at that line and a cup-base entry at 40.34. Volume was more than double its average.
On the downside, Trip.com plunged more than 11% in volume 487% above average as shares fell further below the 50-day line and to the long-term 200-day line. Shares had been forming a base with a 77.18 buy point, but that formation has been decimated.
Follow Scott Lehtonen on X at @IBD_SLehtonen.
