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: $40
Nearest Support: $36.50
Shares of wearable action camera maker GoPro (GPRO) - Get GoPro, Inc. Class A Report are seeing ample attention to close the week, after hitting the public markets for the first time yesterday morning. GoPro priced at $24, but it hasn't traded anywhere near that level since shares started trading in the secondary markets.
While it's still early to get a technical picture for GPRO, the nearest meaningful support level is down at $36.50 and the closest price ceiling is up at $40. Like most other IPO names, GoPro is supremely speculative at this point, but momentum is certainly kicking off in favor of buyers in the first two sessions.
Nearest Resistance: $33
Nearest Support: $29
Catalyst: Spinoff Pressure
Manitowoc (MTW) - Get Manitowoc Company, Inc. Report operates two very disparate businesses: It builds cranes, and it manufactures restaurant equipment like ice machines. Some investors think that they'd be better served by breaking those two units apart, spinning off the food service business into a separate company. MTW is seeing big volume this afternoon, following news that activist investor Relational Investors took an 8.5% stake in the firm and is likely to lobby for the spin-off.
Technically speaking, things are getting interesting at MTW. Today's news broke shares out to retest a key resistance level at $33, and form the early stages of an inverse head and shoulders setup. If MTW breaks out above that $33 price ceiling, it becomes a high-probability buy.
NorthStar Realty Finance
Nearest Resistance: N/A
Nearest Support: $17
Catalyst: Analyst Note
Last up on our list of actively trading stocks is NorthStar Realty Finance (NRF) , a name that's up 2.3% on high volume this afternoon, following a note from FBR that indicated the announcement of NorthStar's planned asset management spin-off date could prompt a rally in shares. The note is helping to propel shares through a key resistance level at $17, and onto new highs to end the week.
New highs are significant from an investor psychology standpoint because they mean 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.
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