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. And when there's a big catalyst, there's often a trading opportunity.
Without further ado, here's a look at today's stocks.
Nearest Resistance: $84
Nearest Support: $76
Catalyst: Buyout Denial
Stryker (SYK) - Get Report is up more than 3% on big volume this afternoon, following the firm's denial that it was planning to acquire UK-based artificial hip and knee maker Smith & Nephew. Rumors that SYK could be planning a big-dollar buyout of the medical device maker had shares of the firm up previously in the week. Ironically, both names are rallying as a result of the attention today.
From a technical standpoint, SYK's chart looks particularly attractive right now. Stryker is currently forming an inverse head and shoulders pattern, a bullish setup that triggers on a breakout above the $84 neckline level. While shares flirted with a breakout today, they're not holding it. Wait for SYK to show its ability to catch a bid above $84 before jumping in.
Nearest Resistance: $57
Nearest Support: $45
Catalyst: Secondary Offering, Downgrade
After rallying hard in 2013, 3D printing stocks have been correcting equally hard in 2014. All the while, 3D Systems (DDD) - Get Report has been one of the most high-profile ways to get exposure to the trends, both up and down. Today, DDD is definitely the latter. That's because shares are down close to 11% Wednesday afternoon after the firm announced that it would be raising cash through a 6 million share public secondary offering. Pacific Crest downgraded the stock on news of the planned dilution.
The good news for investors is that shares of DDD may be down, but they're not out. The move lower doesn't break the rounding bottom setup that's been forming in DDD for the last two months. From here, a breakout above resistance at $57 is the buy signal in this name.
Nearest Resistance: $14.30
Nearest Support: $12.57
Catalyst: Acquisition News
PetroLogistics (PDH) is up more than 10.2% in this afternoon's session, driven higher on big volume following news that the small-cap chemical company was being acquired by Flint Hills Resources, a subsidiary of Koch Industries, for a deal worth $2.1 billion. PDH immediately rocketed past its $14 offer price on the news, an indication that investors are confident in the deal -- and their abilities to collect PDH's 10% dividend yield until the official close of the agreement.
PDH has been in a textbook uptrend for a while now, but the bottom line is that the money has already been made in this high-yield chemical maker. If you didn't already down PDH ahead of the deal, there's no high probability trade here anymore.
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