Stock Quotes in this Article: ARR, FTR, LCC, BBRY

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.

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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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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.

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BlackBerry

Nearest Resistance: $17

Nearest Support: $13

Catalyst: Technical Setup

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BlackBerry (BBRY) seems to be a perennial player on our list of most active stocks -- especially lately. Today, shares are rallying 5%, bouncing after four consecutive days of selling. The big BBRY shakeup from earlier this month -- a ticker change and new product announcement -- is the reason for the elevated trading activity.

Despite buying today, BBRY still looks “toppy.” While shares are staging a bounce off of a nearby support level at $13, lower swing highs suggest that sellers are getting increasingly concerned about taking gains while they can. If shares keep it up, a drop below $13 is an actionable signal to sell or short shares.

US Airways

Nearest Resistance: $14

Nearest Support: $13

Catalyst: American Airlines Merger

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It’s been a stellar year for US Airways (LCC). Shares of the legacy carrier have climbed by more than 50% in the last 12 months, buoyed by newfound strength in the airline business. But that trajectory is getting threatened today after the firm announced a merger with bankrupt AMR (AAMRQ), the parent company of American Airlines.

The move is a coup for AMR shareholders who didn’t expect much of a stake post-bankruptcy, sending shares up more than 44% today. But LCC is selling off around 7% as investors worry about their minority position in the combined firm, which will fly the new American Airlines colors on its fleet.

From a technical perspective, LCC is the more interesting of the pair. Shares had been consolidating after rallying hard for the last six months. But now a breakdown below former support at $14 is sending a sell signal for this stock. Despite the potential benefits from the merger, US Airways shareholders looking for an exit should pull the life jackets from under their seats and exit this plane now.

Armour Residential REIT

Nearest Resistance: $7.10

Nearest Support: $6.30

Catalyst: Estimated Results, Share Offering

Mortgage REIT Armour Residential REIT (ARR) is getting a volume spike today after the firm announced its preliminary results for the fourth quarter of 2012 as well as pricing for a 65 million share offering. Normally, only around 4 million shares of ARR change hands on any given day -- but as of midday, around 70 million shares had already been traded.

Part of activity in ARR is coming from the drop in shares as a result of the news. As I write, ARR is off by around 5%, sitting midway in between support and resistance for shares. That middle ground isn’t necessarily a good thing; it means that there’s still a fair amount of risk before ARR can comfortably catch a bid.

Frontier Communications

Nearest Resistance: $4.70

Nearest Support: $4.15

Catalyst: Analyst Downgrade

It doesn’t take much to spur selling in a stock that’s under pressure. Today, all sellers in Frontier Communications (FTR) needed was Citigroup’s (C) say-so. The big bank’s equity research arm downgraded FTR this morning, cutting its price target all the way down to $3.50. For a stock that was trading in the high $4 range, that’s not a good thing.

And today’s selling doesn’t help the technical picture in FTR. Shares sold off hard, only to “recover” to a 6% loss on the day. Right now, shares are sitting right above support at $4.15, luckily a price that’s acted as a strong support level for the last several months. Opportunistic buyers should wait for FTR to stage a bounce off of $4.15 before buying – if shares fail through that price level, Citi may be right about its price target sooner than expected.

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.