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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.
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.
Research In Motion
Nearest Resistance: $18
Nearest Support: $12.50
Catalyst: Record BlackBerry Order
Shares of Research In Motion (BBRY), better known as BlackBerry these days, are managing to shrug off some of yesterday’s gains this afternoon after the firm announced a record 1-million unit order for its new BlackBerry 10 smart phone. The news comes as the latest shot in the arm for BBRY, in spite of today’s minor correction, since the $8 billion handset maker has been under some pretty substantial pressure in recent years at the hands of rivals such as Apple and Samsung.
But while shares are climbing fast in the short-term, the rally may be short-lived from here. That’s because BBRY is starting to look “toppy” again thanks to a head and shoulders topping pattern that’s been forming in shares for the last few months. If BBRY takes out support at $12.50, look out below.
BBRY was also featured earlier this week in “4 Big Stocks Rising on Big Volume.”
Nearest Resistance: $21
Nearest Support: $19
Catalyst: Technical Setup
Mexican phone carrier America Movil (AMX) is finally catching a bid today, up 3.5% this afternoon after getting shellacked for the past two months. Shares are bouncing on high volume today, after this stock found a pocket of support at $19. If nothing else, that should buy AMX shareholders a little more time above water.
That said, as a trader, I wouldn’t recommend being a buyer here. Support’s still too tentative to risk seeing AMX’s bids evaporate. I’d recommend waiting for shares to push through today’s high-water mark before trying to get opportunistic in America Movil.
Nearest Resistance: $4
Nearest Support: $3.60
Catalyst: Acquisition Rumors
Zynga (ZNGA) has been staging an impressive rally this quarter, up more than 45% in the last three months alone. This week, Facebook’s (FB) little buddy is getting extra attention from rumors over a proposed buyout by Yahoo! (YHOO). Whether or not the rumors prove to be true is another story, but I’m willing to admit that ZNGA actually looks pretty decent from a technical standpoint.
That’s thanks to a solid round-number resistance level at $4, and uptrending support below shares. A breakout above $4 means that any glut of sellers has been taking out, and it suddenly makes sense again to be a buyer.
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.