- Side-Step the Selling With These 5 Big-Name Trades
- 3 Stocks Breaking Out on Big Volume
- 4 Stocks Rising on Big Volume
- 3 Stocks Spiking on Unusual Volume
- A Small Stocks to Play the Ukraine Crisis
3 Hot Stocks to Trade (or Not) - views
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.
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.
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.
Nearest Resistance: $23.75
Nearest Support: $23.50
Catalyst: Acquisition Announcement
NV Energy (NVE) gapped up hard this morning after news came out that Berkshire Hathaway's (BRK.B) MidAmerican Energy unit was buying the utility for $5.6 billion -- a deal that works out to $23.75 for NVE shareholders. The news sent NVE up 22% to $22.59 as I write, leaving a tiny risk premium in place.
The news broke the downtrend that NVE had fallen into after breaking down through the uptrending channel that had been propelling shares higher for most of 2013. Barring the surprise acquisition, NVE would likely have kept selling off -- but with almost all of the deal value priced into shares, there isn't a trade to be made on this setup for late-to-the-game investors at this point.
Nearest Resistance: $25.50
Nearest Support: $24
Catalyst: Dividend Initiation and Buyback Hike
Another name that's rallying today -- albeit less violently -- is EMC (EMC). EMC is up more than 5% in this afternoon's early trading after the firm announced that it was initiating a 10-cent quarterly dividend and buying an extra $5 billion worth of its own shares. The dividend gives EMC a currently yield of 1.7%.
From a technical standpoint, EMC has had a rough year. While today's solid move higher is helping, it hasn't broken the technical downtrend that's been pressing shares lower for all of 2013. Investors should watch out for overhead resistance at $25.50.
Nearest Resistance: $21.20
Nearest Support: $19
Catalyst: Miner Rally
Gold miners are rallying hard on gold's bounce today, and $21 billion mining firm Barrick Gold (ABX) is leading the pack in terms of trading volume this afternoon. Barrick is one of the largest gold producers in the world, with more than 140 million ounces of the yellow metal in its proven reserves, so it's no huge surprise that it's become the go-to way to get exposure to gold miners.
Barrick looks stellar from a technical standpoint. While the stock bottomed out in late April, it's been forming a bullish ascending triangle bottom more recently, and shares are testing resistance at $21.20 today. If ABX can hold above $21.20 tomorrow, I'd call that a buy signal.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
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