- 3 Huge Tech Stocks Grabbing Headlines -- and How to Trade Them
- Dividend Preview: 5 Dividend Stocks Ready to Pay You More
- 4 Stocks Under $10 Moving Higher Into Breakout Territory
- 3 Breakout Financial Stocks Under $10 for Your Watch List
- 3 Tech Stocks Under $10 Triggering Breakout Trades
4 Big Tech Stocks on Traders' Radars - views
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: $25
Nearest Support: $23.50
Catalyst: Analyst Upgrade
Facebook (FB) is seeing a pop on high volume today after an analyst upgrade at Jeffries sparked buying in the social networking stock this morning. Facebook has been a cautionary tale of late. Its IPO was fraught with missteps, and the scores of retail investors who bought the stock on its first day of trading continue to sit on hefty losses today. It's too early to tell is today's 6% jump can change that.
Facebook's drop below support at $25 was significant -- it meant that the glut of buying pressure that's previously been down at that level got taken out by increasingly eager sellers. And while today's bounce is keeping FB off of the year-to-date lows set yesterday, we're still under newfound resistance at $25. I couldn't recommend buying unless Facebook can catch a bid above that level this week.
Nearest Resistance: $3.80
Nearest Support: $3.40
Catalyst: Negative Analyst Note, Market Share Loss
Wall Street analysts are impacting another perennial high-volume name today: Nokia (NOK). Nokia is off by 3% this afternoon after a negative note from RBC spurred sellers to pull the trigger on shares. Helping things along was news that the Finnish phone maker lost the leading market share in its home country to rival Samsung, a notable blow in a place where consumers have an added reason to buy Nokia handsets.
While Nokia is in a downtrend right now, it's still got several support levels nearby to catch shares on the down-side -- the nearest is at $3.40. While I wouldn't recommend jumping into NOK right now, it's not a particularly compelling sell at this point either.
Nearest Resistance: $4.40
Nearest Support: $4.30
Catalyst: Acquisition Bid Increase
Clearwire (CLWR) is rallying today, gapping up more than 24% after Dish Network (DISH) raised its bid to $4.40 in order to one-up the rival offer from Sprint Nextel (S). Nothing benefits shareholders like a bidding war, and the back and forth between Sprint and Dish is certainly proving lucrative for CLWR's owners.
Still, headline risk is too high in this stock to find a high-probability trade here. If you haven't already bought shares before today, it's probably not worth the risk.
Nearest Resistance: $3.60
Nearest Support: $3.20
Catalyst: FB Sympathy Move
Last up today is Zynga (ZNGA), a social gaming stock that's getting hefty trading volume as a sympathy mover tied to Facebook. Since Zynga has huge ties to Facebook's fortunes, the gaming company tends to ebb and flow with its larger partner. In a lot of ways, that makes Zynga sort of a high-beta version of FB. The big divergence of late has been the fact that ZNGA has sported much better relative strength.
Looking at the technicals, Zynga has been consolidating for the better part of the last month. That tight sideways range gives us a way to trade ZNGA: A breakout above $3.60 resistance is a short-term buy signal, and a breakdown below $3.20 support is a sell indicator. Either way, I'd recommend looking for cues in FB as to where ZNGA ends up.
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