How to Use Stocks On The Move to Get in Early on Potential Big Winners

TL;DR

Stocks On The Move can help investors spot potential big winners early by highlighting price gains accompanied by unusually heavy volume, a sign that large institutional investors are buying shares. Chipotle Mexican Grill made the list while forming its base, then rose 170% over the 17 months after its breakout. Read on to see what signals to watch, where to find the screen, and how to use it in a regular investing routine.

Transcript

I'm Matthew Galgani with your 2-minute tip on how to get in early on potential big winners using Stocks On The Move. After the fact, anyone can go back and see which stocks went up 50%, 100%, or more, but how do winning stocks start those big runs? And how can you spot them early enough to take advantage of those gains? One way is to use Stocks On ... Read More

Key Insights

• ❣️ Stocks On The Move focuses on stocks with heavy volume and significant price gains, indicating institutional investor interest.
• 🍳 Checking Stocks On The Move regularly helps identify potential winners before they break out.
• 😃 Chipotle Mexican Grill is provided as an example of a stock that appeared multiple times on Stocks On The Move during its big run, resulting in a 170% increase over 17 months.
• 😃 While not all stocks listed on Stocks On The Move become big winners, virtually all big winners make an appearance on the platform.
• 🏛️ Investing routine and building a quality watchlist are emphasized as important aspects of using Stocks On The Move effectively.
• 😉 The importance of monitoring volume percentage change and price increases for early identification of potential winning stocks is highlighted.
• 👣 Stocks On The Move can be accessed through investors.com and the print and digital editions of IBD, with a weekly version available on Mondays in IBD's Monday edition.

Questions & Answers

Q: How do you use Stocks On The Move to find potential big winners early?

Check Stocks On The Move regularly for stocks making large price gains on volume much higher than normal. Add promising names to a watch list so you are prepared if they later break out, as Chipotle Mexican Grill did after appearing on the list while forming its base.

Q: What is Stocks On The Move?

Stocks On The Move is a screen that alerts investors to stocks rising in price on volume much higher than normal. It uses IBD's volume percentage change feature and is updated continually throughout each trading day on investors.com.

Q: Why is unusually heavy trading volume important?

Unusually heavy volume can indicate that large institutional investors are buying shares. According to the transcript, these investors can provide the fuel a stock needs to make a sustained upward move.

Q: What did Stocks On The Move reveal about Chipotle Mexican Grill?

Chipotle appeared on the list on July 23, 2010, while it was still forming its base, after gapping up 9% on volume over 300% above average. On September 1, 2010, it rose 8% on volume 129% above average as it broke out of a cup-with-handle pattern.

Q: What happened after Chipotle broke out?

After appearing in Stocks On The Move and breaking out of its base, Chipotle rose 170% over the next 17 months. Its earlier appearance could have prompted an investor to add it to a watch list before the breakout.

Q: Do all stocks on Stocks On The Move become big winners?

No, not every stock appearing on the screen becomes a big winner. The transcript says, however, that virtually all big winners appear on Stocks On The Move, which is why it recommends checking the screen regularly.

Q: Where can investors find Stocks On The Move?

The screen is available on the homepage of investors.com and each day in the print and digital editions of IBD. A weekly version appears in the Monday edition of IBD, which is delivered on Saturdays.

Q: How can busy investors fit Stocks On The Move into their routine?

Investors who are busy during the week can review the weekly version over the weekend to prepare for the week ahead. The transcript also recommends building a quality watch list and offers a free IBD products coaching session through investors.com/coaching.

Summary & Key Takeaways

• Stocks On The Move is a tool available on investors.com and in the print and digital editions of IBD that tracks stocks with significant price gains and heavy volume.

• Heavy volume indicates institutional investors scooping up shares, providing fuel for sustained upward moves.

• Checking Stocks On The Move regularly can help spot potential winners before they break out, allowing investors to take advantage of future gains.