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3 Huge 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: $14
Nearest Support: $13.25
Catalyst: Commodity Bounce
The last year has been rough for Brazilian mining company Vale (VALE). Shares have slid more than 29% in the trailing 12 months. But shares could be starting to turn over in 2014. Today, for instance, Vale is up 2.7% on strength in the commodities that the firm mines, a welcome push on a day when most stocks are getting pummeled. And now, an inverse head and shoulders pattern points to even more upside in VALE, as long as shares can catch a bid above $14.
$14 is the breakout level that we'll want to see get taken out by increasingly eager buyers before this trade becomes buyable. After that happens, keep a tight stop in place.
Nearest Resistance: $38
Nearest Support: $36
Catalyst: Satya Nadella CEO Job
Microsoft (MSFT) is seeing another day of high volumes after Satya Nadella was named CEO in a move that was highly anticipated by Wall Street. Nadella should be pleased with the fact that investors are giving him such a resounding vote of approval, especially in the wake of how investors reacted to his predecessor's departure.
The timing may be excellent as well. MSFT looks strong from a technical standpoint in spite of the market correction that's been going on in the background.
Like VALE, Microsoft is forming an inverse head and shoulders pattern, albeit in the longer-term. The breakout comes on a push through resistance at $38, a price that shares tested as recently as last week. When $38 gets taken out, owning MSFT becomes a high probability trade again.
Las Vegas Sands
Nearest Resistance: $82.50
Nearest Support: $72.50
Catalyst: Drop in Macau Revenue Growth
Casino resort operator Las Vegas Sands (LVS) is trading lower on volume this afternoon, after news hit that revenue growth gambling hotspot Macau slowed to its lowest level in 15 months. That's a big concern for firms like LVS, which earn the lion's share of their profits in the Chinese gambling district.
But while shares opened down sharply lower, they've managed to regain ground over the course of today's market session. For now key support at $72.50 remains intact. That's the place to keep your stop loss below if you're in LVS for the short-term.
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
Follow Jonas on Twitter @JonasElmerraji