Stock Quotes in this Article: CIEN, ORCL, SODA

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

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Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

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These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

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Oracle

Nearest Resistance: $34

Nearest Support: $33

Catalyst: Analyst Downgrade

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Oracle (ORCL) is used to being one of the most heavily traded names on the Nasdaq, but it's getting some added attention this afternoon after the firm's analyst downgrade at German financial group Berenberg. Oracle's price action hasn't exactly been stellar in 2013 -- the $156 billion enterprise software giant is effectively flat on a year when the S&P 500 has rallied double-digits. And the analyst downgrade is holding shares down another 2% as of this writing.

But at least today's dip isn't technically significant. Oracle has been in a strong uptrend since it bottomed out at the end of March, catching a bid each time shares slipped down to trendline support. While today's selling is giving Oracle another test, I wouldn't be too concerned unless shares slip under support at $33.

Ciena

Nearest Resistance: N/A

Nearest Support: $17.50

Catalyst: Guidance Beat

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The exact opposite is happening over at Hanover, M.D.-based Ciena (CIEN). Shares are up more than 14% this afternoon following the company's second-quarter earnings call. While the firm missed analysts' expectations of a 1-cent loss per share (it actually lost 27 cents), guidance numbers put investors in buy mode today. That frenzy to pick up shares is sending CIEN to a new 52-week high on high volume.

Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. Risk-tolerant traders can enter a position here with a tight stop in place.

Sodastream International

Nearest Resistance: N/A

Nearest Support: $65

Catalyst: Buyout Rumors

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Home beverage device company Sodastream International (SODA) has been a stellar momentum name for 2013. Shares of the $1.5 billion company have rallied more than 63% year-to-date. And today, rumors of a potential buous offer from PepsiCo (PEP) are sending shares of SODA up another 5.6% on heavy trading volume. Sodastream's management has already waved off the buyout rumors as untrue, but the potential for SODA to become an acquisition target has clearly affected investors who continue to pile into the stock.

SODA's new highs are bullish for the exact same reason that the new highs in CIEN are. Even though this stock has made a colossal run, experienced traders may want to consider a starter position in this stock.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

 

Follow Jonas on Twitter @JonasElmerraji