The Nasdaq has been relatively flat, the S&P 500 has declined 0.2% and the Dow has fallen 0.5% so far today. The recent surge in popularity of technological stocks has launched the Nasdaq Composite Index into the spotlight, making it one of the premier indexes in the world.
The biggest movers traded on the NASDAQ so far are:
|Company||Market Cap||Percentage Change|
|True Religion Apparel (Nasdaq:TRLG)||$541.8 million||+21.7%|
|Helen of (Nasdaq:HELE)||$1.01 billion||-10.3%|
|NXP (Nasdaq:NXPI)||$6.16 billion||-5.8%|
|Liberty Interactive Corporation - Series A Liberty (Nasdaq:LVNTA)||$26.77 billion||+5.7%|
|Kayak (Nasdaq:KYAK)||$1.27 billion||-5.4%|
|Monster (Nasdaq:MNST)||$10.01 billion||-5%|
|Costco (Nasdaq:COST)||$43.08 billion||+4.4%|
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True Religion Apparel (Nasdaq:TRLG) is currently at $25.56 per share after a dramatic increase of 21.7%. With five million shares changing hands so far today, the company's volume is 19.4 times its current three-month average. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting.
Shares of Helen of (Nasdaq:HELE) are currently trading at $28.65, a steep decline of 10.3%. So far today, the company's volume is 321,660 shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement.
NXP (Nasdaq:NXPI) has decreased to $23.05 per share, a 5.8% fall. The company's volume is currently 1.8 million shares for the day, which is more trading activity than there was yesterday. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move.
Liberty Interactive Corporation - Series A Liberty (Nasdaq:LVNTA) has risen 5.7% and is currently trading at $52.01 per share. This morning, the company's volume is 298,686 shares. This is 1.1 times its average daily volume. The trading volume for a stock indicates the level of investor interest.
At $31.26, Kayak (Nasdaq:KYAK) has slipped 5.4%. So far today, the company's volume is 21,439 shares, 0.1 times its average over the past three months. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock.
Currently trading at $53.88 per share, Monster (Nasdaq:MNST) has fallen 5%. This morning, the company is trading a volume of 1.6 million shares. Volume indicates the level of interest that investors have in a company at its current price.
Costco (Nasdaq:COST) has moved up 4.4% and is currently trading at $104 per share. So far today, 2.8 million shares have changed hands, whereas yesterday, volume was only 1.6 million shares. In technical analysis, trading volume is used to determine the strength of a market indicator.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.