Stock Quotes in this Article: EPB, KMP, MNKD, KMI

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.


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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.


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Without further ado, here's a look at today's stocks.

Kinder Morgan

Nearest Resistance: N/A

Nearest Support: $38

Catalyst: Kinder Morgan Consolidation

Shares of Kinder Morgan (KMI) are grabbing headlines this afternoon, following an announcement from founder Rich Kinder that the firm will combine KMI and its three publicly-traded sibling companies into a single entity. KMI will do the acquiring in the deal, picking up shares of Kinder Morgan Energy Partners (KMP), Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB) in a deal that will create largest energy infrastructure company in North America.

From a technical standpoint, today's deal is good news for all involved. Shares of KMI are rallying hard in the wake of the announcement, up 8% on hopes that the larger combined firm will gain economies of scale -- and keep up their beefy dividend growth trajectory. From a technical standpoint, this stock still looks buyable here.

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MannKind

Nearest Resistance: $11

Nearest Support: $8.50

Catalyst: Sanofi Deal

Shares of mid-cap biopharma stock MannKind (MNKD) are up 10% this afternoon, following news that the firm had penned a deal with Sanofi (SNY) for global rights to its newly approved Afrezza inhaled insulin therapy. The deal pays out MannKind as much as $925 million for the drug in a profit-sharing agreement.

That announcement broke shares out of the slump they've been stuck in since the beginning of July. From here, resistance at $11 looks like a meaningful upside target. Now looks like a reasonably good time to be a buyer now that the event risks have mostly dissipated in shares.

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Kinder Morgan Energy Partners

Nearest Resistance: $102.50

Nearest Support: $85

Catalyst: Kinder Morgan Consolidation

Another side of the Kinder Morgan deal is Kinder Morgan Energy Partners (KMP), one of the names that's getting acquired by KMI. The deal terms put KMP's total price tag at $88.77 as I write, made up of 2.19 KMI shares per unit plus $10.77 in cash. The stock component of the offer price gives KMP some upward mobility today based on KMI's longer-term upside potential from a finalized deal.

KMP's chart looks almost identical to the setup in KMI, and that's not likely to change between now and the time that the deal closes. If you're looking for a trading opportunity, it's in KMI, not KMP. There's a fat premium built into shares of the latter right now.

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El Paso Pipeline Partners

Nearest Resistance: $44

Nearest Support: $36

Catalyst: Kinder Morgan Consolidation

El Paso Pipeline Partners (EPB) is another part of the big Kinder Morgan deal that got announced this morning. As of this writing, EPB unitholders will be entitled to a total deal worth $41.50 per share, made up of .945 KMI shares plus $4.65 in cash per unit. At current levels, that leaves a tiny 1.4% risk discount on the trade for merger arbitrageurs to take advantage of.

Just like with KMP, EPB traders are better off latching onto the upside move in KMI rather than in this name.

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 was long AAPL.

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