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 recently.
Without further ado, here's a look at today's stocks.
Nearest Resistance: $6
Nearest Support: N/A
Catalyst: Technical Setup
Drugstore chain Rite Aid (RAD) continued its selloff to start the week, dropping 5.5% on Monday as sellers stepped in at the same time that buyers were nearly nonexistent.
The violation of $6 support earlier in the month was the initial sell signal in RAD, but Monday's crack below $5 is an important indication that this stock still has downside risk ahead of it. The technical minimum-measuring objective in RAD puts a target down at $3.50 for shares.
Nearest Resistance: $3.25
Nearest Support: $2.75
Catalyst: Technical Setup
Zynga (ZNGA) dipped 1.4% for technical reasons on Monday, dropping down to test support at $2.75 before catching a bid and ending the session back in the middle of the sideways channel that's corralled shares since June. Right now, Zynga is still consolidating in that channel. We'll get our first glimpse at this stock's next move depending on which way it exits that range.
For another take on Zynga, it was also featured recently in 5 Stocks Under $10 Making Big Moves Higher.
Nearest Resistance: N/A
Nearest Support: $70
Catalyst: New Cameras
GoPro (GPRO) rallied more than 10.7% on Monday, kicking off the week on a high note after the release of a new set of cameras. The Hero 4 series of action cameras is expected to go on sale in October. GPRO has been a big momentum name since shares IPO'd earlier this summer, and the new highs this stock is making this week looks even more bullish amid another broad stock correction.
Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. For traders who aren't risk-averse, there's still time to build a position in GoPro now, just keep a tight protective stop in place.
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