Chicago, IL – June 20, 2012 - Stocks in this week's article include AuthenTec, Inc. (NASDAQ: AUTH), B&G Foods, Inc. (NYSE: BGS), Marlin Business Services Corp. (NASDAQ: MRLN), SLM Corporation (NASDAQ: SLM) and Standard Parking Corp. (NASDAQ: STAN). Kevin Matras shows how to screen for weekly volume increases to uncover institutional buying.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
Screening for stocks with rising volume (along with prices of course) can put some fantastic stocks on your radar screen.
I prefer to search for at least two weeks of increasing volume along with rising prices. And in my testing I have found that 3 weeks performs even better.
One week volume spikes, however, will not get thru as oftentimes those can be driven by one day events. Instead, it's the successive volume increase that shows true buying demand that gives this set-up its value.
The volume increase also doesn't have to be huge. We're not talking about a several hundred percent increase. In fact, often those massive increases prove to be turning points.
What we're looking for are noticeable increases, like 10%, 20% or 50% increases, etc. But nothing outrageous, like a 10 fold increase. Remember, the last thing an institutional investor wants to do is call too much attention to himself, while he or she is in the midst of building a position.
But if you know what to look for, you can see all of this happening in plain sight, and get in for the ride as they flesh out the rest of their position.
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