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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.
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. >>5 Huge Stocks Ready to Slingshot Higher
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 most active stocks on the market today.
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 underway. And when there’s a big catalyst, there’s often a trading opportunity. >>5 Stocks With Big Insider Buying
Without further ado, here’s a look at three of today’s names.
Nearest Resistance: $6.60
Nearest Support: $6.10
Catalyst: Japanese Bank Stumbles
Japanese banks have been stumbling this week, a fact that’s trickling into trading stateside with the American depositary receipt -- or ADR -- of Sumitomo Mitsui Financial Group (SMFG). Sumitomo is one of the biggest financial services firms in Japan, making it an obvious choice for investors seeking out (or trying to avoid) exposure to financials in the land of the rising sun. >>5 Financial Stocks Hedge Funds Love
Despite an uptick in trading volume today, shares are only up around 2% as they bounce off of yesterday’s August lows.
Shares of SMFG have been range-bound for the last couple of months. Until this stock can break outside of that $6.10 to $6.60 range, there isn’t a trade here. Idenix Pharmaceuticals
Nearest Resistance: $8
Nearest Support: $4.30
Catalyst: FDA Decision >>5 Stocks Under $10 Set to Soar
Idenix Pharmaceuticals (IDIX) is getting shellacked today, after announcing that the FDA was placing a traial for its lead hepatitis C compound on hold. While Idenix’s compound didn’t have any issues, a similar compound under trial from Bristol-Myers Squibb (BMY) did cause a serious health issue in at least one patient. The similarities between the drugs are enough to suspend IDIX’s contender -- and send shares down 30% today. Idenix is the prototypical falling knife here. Today’s gap down is a big move lower for shares, but it’s not necessarily any sort of a bottom at this point.
Opportunistic buyers should wait for shares to catch a bid before trying to jump on a bargain opportunity. The nearest meaningful support level is the stock’s 52-week low at $4.30. Wal-Mart
Nearest Resistance: $74
Nearest Support: $71
Last up is retail giant Wal-Mart (WMT), one of the "5 Consumer Stocks Hedge Funds Love" right now. They’re probably just not loving today’s price action.
Wal-Mart is down around 3% as I write, the result of earnings that, while strong, fell short of what analysts had been expecting. The disappointment broke shares down below the bottom of an otherwise bullish technical setup, opening the door to more downside until WMT touches support at $71. I wouldn’t go back and buy this stock unless it can push through resistance at $74; that’s too close for an upside barrier otherwise.
Wal-Mart is one of Warren Buffett's holdings. 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, based out of Baltimore, is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.