CHICAGO, Aug. 21, 2013 /PRNewswire/ -- Stocks in this week's article include: hhgregg, Inc. (NYSE: HGG – Free Report), Stratasys Ltd. (NASDAQ: SSYS – Free Report), Rubicon Technology, Inc. (NASDAQ: RBCN – Free Report), Furmanite Corp. (NYSE: FRM – Free Report) and Ormat Technologies Inc. (NYSE: ORA – Free Report). Kevin Matras goes over how to screen for weekly volume increases to uncover institutional buying.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
One of the best ways to find stocks on the move that are grabbing the attention of investors is to screen for stocks with increasing volume.
This is because increased volume shows investor interest. As more investors buy the stock, the stock's price should go higher.
But the individual investor, while important to the market, doesn't really have the firepower to affect volume the way that big institutional investors do.
And very few things can move a stock more than institutional buying.
Why is that?
For one, institutions have the ability of buying tens of millions of dollars worth of a stock and even hundreds of millions of dollars. And because their purchases are often so large, it typically takes weeks, if not months, for an institutional investor to build a position.
Given this commitment, considering it will also take several weeks or months to get out, you can be sure that these institutional investors have done plenty of homework to feel good about the fundamental prospects of the company.
This does not mean you can ignore your own analysis or the stock market as a whole. But screening for stocks with rising volume (along with prices of course) can put some fantastic stocks on your radar screen.
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