And the story is usually one with a happy ending if you are willing to listen closely and pay attention. Here are 4 stocks that have enjoyed high levels of institutional buying in the past month. Who can see what common factor is shared by all of these stocks?
That's right, Mary Jane - a huge increase in volume precedes their ascent. Did everyone pick up the Return to 8 set-up on CCF (in case you missed the volume memo)? While it isn't as visually appealing on the other three they each had a pause after their initial run up, a little sideways step, and then a continuation of the climb. For those of you who are really sharp I bet you picked up on that blow-off bottom on CALM between 12/29 - 01/04. You might have wondered what was going on there? We also have a 3-average crossing on CCF and ICAD. That generally says to me - buy me - especially if I see it with this kind of volume. I don't normally scan for stocks in this price range but I can see now that that might be a mistake. I certainly will be looking for volume jumps in this area from here on out.
I obtained these stocks and a bunch more of the same type by using a pre-defined scan over on MSN "Institutional ownership up last month." So if you just want to jump on the 'toot bandwagon you are perfectly welcome to do so.
But instead of using that scan what you might want to do is find a scanner that allows you to look for stocks that are showing a major increase in volume right now and then wait for the pause. As you can see from each of these there will be a pause and a sideways step to the EMA 4 or the 8.