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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.
Nearest Resistance: $51
Nearest Support: $49
Catalyst: Earnings Disappointment
Verizon (VZ) is seeing increased trading volumes this afternoon on the heels of the firm's second-quarter earnings call. While the numbers came out in line with Wall Street's expectations, higher costs in VZ's fixed-line business didn't impress investors. Shares of the $142 billion phone carrier are off 2% as a result.
From a technical standpoint, VZ has been in an uptrend since the start of June -- albeit a shallow one. While today's reaction to earnings isn't particularly good, shares are obeying trendline support, and that's what counts.
Investors looking to build a position in VZ could pick a worse time that this week; just look for shares to catch a bid here at support before putting money in this stock.
Nearest Resistance: $13.40
Nearest Support: $12.80
Catalyst: Privatization Vote
PC-maker Dell (DELL) has been swinging in a wide range for the past few sessions as the vote on Michael Dell's $24.4 billion privatization deal got closer. While the vote was scheduled for today, it's being postponed until July 24 in an attempt to see more proxy votes come in.
Investors reacted well to the news, bidding shares of DELL 2.3% higher in today's session. For traders, though, there really isn't a setup worth playing here. While there is still a risk premium priced into this stock (that could get filled once the votes are in), it's a lot of headline risk for a 3.5% upside.
I'd recommend steering clear of the drama unless you already own shares of DELL.
Nearest Resistance: $29.50
Nearest Support: $27.50
Catalyst: Earnings, Alibaba Boost
Yahoo! (YHOO) is seeing a minor correction in today's session after rocketing higher on the heels of stellar results at Alibaba Group, the Chinese e-commerce giant that Yahoo! owns a 24% stake in. While Yahoo!'s results were pretty lackluster as CEO Marissa Mayer continues to turn the chip around, Alibaba managed to triple its income for the quarter and boost sales by 71%.
Talks about bringing Alibaba public could unlock huge value for shares of YHOO. Not surprisingly, that helped spur a huge rally in Yahoo!'s shares yesterday. Technically, the breakout above $27.50 resistance was significant. While shares are correcting in this afternoon's session, the overall trend in this stock remains distinctively up.
If you're looking for a buying opportunity, I'd suggest waiting for YHOO to establish some semblance of support above $29.
Nearest Resistance: $18.50
Nearest Support: $16.25
Catalyst: Guidance Concerns
Even though Taiwan Semiconductor (TSM) delivered strong numbers in this morning's second-quarter release, investors are having any of it. That's because that earnings beat came with big concerns about guidance -- including the possibility that inventories could start backing up for TSM later this year. With weakness in semiconductor stocks still fresh in investors' minds, shares are off 8% today.
From a technical standpoint, there's still some room for TSM to fall before it reaches support at $16.25. That level has been a pretty strong price floor for shares in the past, and I'd expect that to continue to be the case.
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