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.
Without further ado, here's a look at today's stocks.
Nearest Resistance: $30
Nearest Support: $24
Catalyst: Secondary Offering Pricing
Small-cap HR outsources TriNet Group (TNET) - Get Report rallied more than 6.8% Friday, following the market's pricing of a 12-million-share secondary offering at $25.50 per share. Technically-speaking, TNET has been looking bullish since shares went public at the end of March – this stock has been bouncing its way higher in an uptrending channel over that entire stretch. But while TNET has been a "buy the dips stock", this isn't a dip here. There's a lot of downside risk in shares before TNET comes close to testing support. The risk/reward looks a lot better by waiting for a more meaningful correction (or otherwise a move above $30) before taking a position here.
Nearest Resistance: $54
Nearest Support: $48
Catalyst: Google Stake Rumors
Online auction site and PayPal parent eBay (EBAY) - Get Report jumped as much as 4.7% on Friday on Twitter rumors that Google (GOOG) - Get Report could be planning a large stake in the firm. Shares faded later in the session when eBay said that it hadn't had conversions with Google about a potential stake. Shares closed up 2.98% to end the week.
Technically speaking, Friday's repreieve from selling didn't change anything. eBay still broke its uptrend at the start of September, falling down towards a test of support at $48. A test of that $48 price floor still looks likely here, Google stake or not.
Health Care REIT
Nearest Resistance: $65
Nearest Support: $61
Catalyst: Share Offering
Aptly named Health Care REIT (HCN) fell 4.87% by Friday's close, dropping after the firm announced that it had priced 15.5 million shares at $63.75 in a new share offering. The firm plans to use its net proceeds to pay back its primary credit facility and to make new health care and senior housing property investments.
But that extra cash isn't necessarily a good thing for HCN right now. Shares broke a key uptrend on Friday's big gap down, and now the rally that shares have been enjoying for all of 2014 is technically busted. The violation of that long-term trendline is a sell signal in HCN today.
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 the names 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. Follow Jonas on Twitter @JonasElmerraji