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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.
>>Beat the S&P 2014 With 5 Stocks Everyone Else Hates 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.
>>5 Rocket Stocks to Buy as Stocks Test New Highs 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. And when there's a big catalyst, there's often a trading opportunity.
Without further ado, here's a look at today's stocks. International Game Technology
Nearest Resistance: $15
Nearest Support: N/A
Catalyst: Cost Cutting Measures, Outlook
Shares of International Game Technology (IGT) are down 8.5% this afternoon, following news that the firm would be reducing its workforce by 7% as a cost cutting measure. The cuts are needed to combat a lowered outlook for 2014 -- the firm expects earnings per share between $1 and $1.10, down from an earlier forecast of $1.28 to $1.38. While today's selloff didn't break the chart from a technical standpoint, that should come as cold comfort to IGT investors right now; shares are still very much in a downtrend right now.
That means that lower levels look likely for the foreseeable future. With the 50-day moving average acting like a solid proxy for resistance right now, it makes sense to stay away from IGT until shares can crack that level. Oi
Nearest Resistance: $1.55
Nearest Support: $1.40
Catalyst: Brazilian Merger Ruling
Brazilian telco Oi (OIBR) is down more than 6% this afternoon following a ruling by the country's securities regulator that allows a vote to dilute shares with a capital raise tomorrow, ahead of a proposed merger with Portugal Telecom. The news sent investors fleeing from Oi on concerns that the deal lacks transparency.
From a technical standpoint, Oi isn't in dire straits just yet -- but a slip through key support at $1.40 changes everything. That $1.40 level has been a price floor for the last year and change, so if it gets materially violated this week, more downside becomes a lot more likely. Caveat emptor.
Nearest Resistance: $36
Nearest Support: $28
Catalyst: Tencent Stake Rumors
Chinese Internet video company Youku Tudou (YOKU) is up nearly 7% this afternoon, following rumors that Tencent was acquiring a 20% stake in YOKU. The rumors come on the heels of significant speculation over YOKU as an acquisition target, and it's not surprising that traders were ready to snap up shares in response to a potential deal. But don't go grabbing shares of YOKU just yet; after rallying 75% in the last 12 months, this stock is starting to look "toppy."
YOKU is currently forming a double top pattern with a breakdown level at $28. If support at $28 gets taken out, then look out below.
Nearest Resistance: $40
Nearest Support: $37.50
Catalyst: Techncial Setup
Meanwhile, enterprise tech giant Oracle (ORCL) is making a run for new highs this afternoon, up 2% and change in Wednesday's session following a big move lower on Friday. Today's upward pressure finally puts ORCL above the high-water mark set last week. $40 is the resistance level to watch in shares or ORCL in the near-term. If shares can push through to new highs, we've got a buy signal.
Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. Wait for selling pressure at $40 to get taken out before jumping in. 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, 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