) -- 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
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
Alpha Natural Resources
Nearest Resistance: $7.50
Nearest Support: $6.75
Catalyst: Earnings, Outlook
Statistically speaking, materials stocks have been the biggest price winners on the heels of earnings surprise this quarter, and
Alpha Natural Resources
) is providing the perfect case in point today. Alpha reported a 61-cent per share loss for the third quarter, less than the 77 cents in the red that Wall Street expected. Better, the firm expects to see better numbers in the coming year thanks to lower coal production costs.
Even though ANR has been hammered lower for most of 2013, the downtrend in shares broke back in the middle of October, pointing to a reprieve for shareholders. Resistance at $7.50 could still be a stumbling block in the near-term, though; risk averse investors should wait to see if ANR can catch a bid above $7.50 before buying.
Nearest Resistance: $14.50
Nearest Support: $13
) is getting hammered down 9% this afternoon after posting its fiscal first-quarter earnings after the bell yesterday. It's not that earnings were bad for JDSU -- the firm actually beat expectations for the period, and swung to a profit -- but guidance doesn't look pretty. Shareholders are unloading this stock on worries over weaker revenues than expected for the year ahead.
Intraday, JDSU looks likely to hit the brakes by support at $13, but that doesn't mean that the longer-term selling is over. Shares have been in an uptrend (if a wobbly one) since the summer, and $13 is make-or-break mode for those higher lows. If support gets violated, look out below.
Nearest Resistance: $21
Nearest Support: $17
Gold mining giant
) is down close to 4% this afternoon following the firm's third quarter earnings call this morning.
-- and even more so for gold miners like Barrick. High gold production costs and falling gold prices have hampered profitability at ABX in the last quarter, and investors are selling shares after the 43% haircut they've taken in 2013.
From a technical standpoint, Barrick's chart still looks broken. Resistance at $21 has swatted back buying pressure on four attempts since April, and while today's selling isn't abnormally large, it's just more distribution on the way down.
To see these stocks in action, check out the at
-- Written by Jonas Elmerraji in Baltimore.
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At the time of publication, author had no positions in stocks mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in
Investor's Business Daily
, and on
Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji