3 Big Stocks to Buy on Big Volume
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.
HP
- Nearest Resistance: $15
- Nearest Support: $12.50
- Catalyst: Technical Setup
Up first is tech firm HP (HPQ) - Get Report . Despite a relatively tight price range, HP is seeing big volume this afternoon, spurred by a test of a major technical level. After correcting toward the end of this month, HP is coming down to test its new trend line support level today, and shares appear to be catching a bid.
From here, a bounce higher makes for a solid buying opportunity in shares of HP, but buyers should be sure to wait for the bounce off of support before jumping in.
Molson Coors Brewing
- Nearest Resistance: $95
- Nearest Support: $92.50
- Catalyst: Technical Setup
$17 billion beer company Molson Coors Brewing (TAP) - Get Report is seeing boosted volume for technical reasons this afternoon, correcting slightly as shares test a steep trend line support level. Molson Coors has been looking strong since shares finished a correction at the end of August, boosted by news that a merger between SABMiller and Anheuser Busch Inbev (BUD) - Get Report would give Molson Coors the opportunity to buy the rest of its joint venture with SABMiller.
From here, a breakout above resistance at $95 is a buy signal for Molson Coors.
Ford Motor
- Nearest Resistance: $17
- Nearest Support: $14
- Catalyst: Labor Deal
Ford Motor (F) - Get Report is seeing a small correction on big volume this afternoon, following more clarity on the firm's new four-year contract with the United Auto Workers union. Ford estimates that the new deal will increase labor costs by less than 1.5% annually, increasing the firm's flexibility in hiring cheaper entry-level workers. That helps to offset some of the cost concerns raised by the pricey deal reached with UAW ahead of the Thanksgiving holiday.
From a technical standpoint, Ford has been in an uptrend since the end of August, making a series of higher lows in a well-defined uptrend. A bounce off of trend line support in Ford would be a solid buying opportunity for investors looking to get into a position in this automaker.
Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.