Stock Quotes in this Article: ARR, BLC, GCI, VALE

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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Nearest Resistance: $13.75

Nearest Support: $13.60

Catalyst: Acquisition

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Small-cap TV station operator Belo (BLC) is up more than 27% this morning after news that it was being acquired by media firm Gannett (GCI) for $13.75 per share. The deal gives Gannett a portfolio of 20 television stations in 15 U.S. markets. BLC is seeing heaving trading volume this afternoon after the news hit, as shareholders take risk off the table by exiting their positions.

The 0.7% risk premium currently in shares as of this writing doesn't look particularly attractive right now. Gannett's $13.75 offer price is effectively a "hard" resistance level right now. If you missed out on this acquisition, it makes zero sense to chase it.


Nearest Resistance: N/A

Nearest Support: $22

Catalyst: Buying BLC

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The same can't be said about Belo's acquiring firm, Gannett (GCI). GCI is rallying hard itself this morning, up more than 26% on high volume this afternoon thanks to the acquisition news. That's sent shares of Gannett to a new multi-year high.

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. Risk-tolerant traders can enter a position here with a tight stop in place.


Nearest Resistance: $14.50

Nearest Support: $13.60

Catalyst: Technical Setup

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Metal miner Vale (VALE) is getting hefty trading volume this afternoon, thanks to a 4% spike in shares that's grabbing traders' eyes. While the bounce is certainly noticeable in today's relatively low-volatility session, it's a little early to call Vale a buyable name. That's because, from a technical standpoint, this stock looks like a train wreck.

The real reason for Vale's upside today is just how hard shares have been hit in the last couple of weeks. Longer-term, things don't look much better: Vale's share price is off more than 31% year-to-date. This stock is bouncing, but I'm far from convinced that shares have found any true semblance of support. Opportunistic traders should wait for VALE to break its downtrend resistance line before thinking about building a position in the Brazilian miner.

Armour Residential REIT

Nearest Resistance: $5

Nearest Support: $4.60

Catalyst: Dividend Reiteration

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It's been a rough month for Armour Residential REIT (ARR). Since the start of May, shares of the mortgage-focused real estate investment trust have dropped by more than 25%. Today, they're getting a reprieve just like the bounce in Vale. One big difference is the fact that ARR's bounce is event-driven: the firm reiterated its monthly dividend at 7 cents per share, a payout that adds up to a whopping 17.4% yield at current price levels. Anxiety over the possibility of a rate cut has been the biggest reason for ARR's drop in the last few months.

Another big difference for ARR is the fact that shares are actually testing trendline resistance thanks to today's 5.4% rebound. If this stock can manage to take out $5, I think we've got a good indication that a price reversal is taking place. Until then, mind the downtrend.

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 Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji