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. >>5 Ways to Profit From a Crowded Short Trade 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. J.C. Penney Nearest Resistance: $9
Nearest Support: $8.50
Catalyst: Technical Setup Retail giant J.C. Penney (JCP - Get Report) is down 2.5% this afternoon on big trading volume, the latest swing in a stock that's been a perennial high-volume name all year long. And despite today's slip in price action, JCP is looking bullish this month. That's because shares are currently forming an ascending triangle, a bullish price setup that's formed by horizontal resistance above shares at $9 and uptrending support to the downside. $9 resistance is the key level to watch right now for JCP. If buyers can push shares above that price ceiling, we've got a buy signal for J.C. Penney.