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 underway. And when there’s a big catalyst, there’s often a trading opportunity.
Without further ado, here’s a look at three tech stocks that show up on today’s list.
Advanced Micro Devices
Nearest Resistance: $5.40
Nearest Support: $5
Catalyst: Outlook Cut
First up is chipmaker Advanced Micro Devices (AMD), a stock that’s getting slammed today after management announced forecast an 11% revenue decline for the second quarter, a major revision lower. At last count, shares of AMD are down more than 10% on the news.
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That fundamental disappointment is having a big impact from a technical standpoint too. AMD gapped significantly lower this morning, dropping below support at $5.40 -- now that price level is a resistance price for shares. Support is tentative at $5 even, a price that AMD is testing as Tuesday’s session creeps further into the afternoon.
If you’re a bargain hunter, I’d recommend staying away from this stock until it can catch a meaningful bid above $5.
Intel
Nearest Resistance: $26.90
Nearest Support: $25.70
Catalyst: Chipmaker Sympathy, ASML Deal
Chipmaker Intel (INTC) is another name that’s no stranger to active trading, and today, it’s getting attention from multiple angles as traders try to figure out which way to push shares. After AMD’s outlook cut, Intel is a prime target for sympathy trading. After all, weakness in one major player typically means weakness for the whole industry.
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But at the same time, a big deal with ASML Holding NV (ASML) a chip equipment maker, is countering some of that negative sentiment.
While Intel is testing support at $25.70 right now, that level is a whole lot less critical than the stock’s next closest support level at $25. A bounce off of either level would be a good place to be a buyer.
Intel was also featured in "6 Hated Stocks to Stay Away From."
Applied Materials
Nearest Resistance: $11.50
Nearest Support: $10.30
Catalyst: Outlook Revision Lower
Chip equipment maker Applied Materials (AMAT) is down similarly today after cutting its sales outlook this morning, a move that sent shares tumbling close to 6% at the open. Since then, AMAT has largely recovered, down just around 1.8% this afternoon.
Like Intel, AMAT is a stock that’s sitting just above support. Between the two, Intel is the stock that looks like a more opportunistic name on a support bounce this week.
Applied Materials, one of Bridgewater Associates, shows up on a list of 10 New Stocks on All-Star Fund Mangers' List.
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.
