4 Underwhelming Earners to Trade (or Not?)
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. Pfizer Nearest Resistance: $25
Nearest Support: $24
Catalyst: Mediocre Earnings Pfizer (PFE - Get Report) is trading slightly lower today after announcing mediocre third quarter earnings last night. Revenues for the quarter dropped more than 16% vs. the same quarter a year ago, and earnings dropped in kind. While the so-so results were largely expected by Wall Street (which is why shares are only off by a couple of points today), the news is prompting hefty volume in the big pharma firm. And from a technical standpoint, the small drop is having a big impact today. That's because Pfizer formed a short-term head and shoulders top in shares that triggered on today's open. The head and shoulders indicates exhaustion among buyers, so it's a bearish sign for this stock's price -- and a signal that Pfizer's uptrend had ended. The fact that the technical setup is short-term helps to mitigate the downside in this stock. Bargain-hunting buyers would be well advised to avoid this stock until it can find meaningful support; even through Pfizer's dividend yield is tipping 3.6% now, the stock's price has given back much more than that in the last few sessions.
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