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: $13
Nearest Support: $10
Catalyst: Brazil Elections
Shares of Brazilian national oil company Petrobras (PBR) - Get Report are getting sold off on big volume this afternoon, down more than 14% following the results of the Brazilian election. President Dilma Rousseff's re-election in Brazil means that the restrictions her administration has placed on PBR are here to stay. Shares had already spent the last month selling off thanks to poll projections, but today's drop is particularly nasty -- the worst one-day decline in PBR in six years.
Technically speaking, PBR's chart is busted. Shares are currently in freefall mode following the violation of trend line support for the first time back in mid-September. Look for $10 as a potential stopping point, but I wouldn't suggest trying to step in here as a buyer.
Banco Santander Brasil
Nearest Resistance: $6.40
Nearest Support: $5.80
Catalyst: Brazil Elections
Banco Santander Brasil (BSBR) - Get Report is another Brazilian stock that's getting shoved lower on big volume following the country's election results. The Rousseff administration's willingness to step in and impart new rules on the private sector is the catalyst here. And Petrobras and Banco Santander Brasil aren't in a vacuum here; the Ibovespa index is down more than 3.4% overall as I write.
The technical story in BSBR is pretty nasty here. Shares violated support at $6.40 back in early October, falling through that long-term price floor, and then confirming last week that it was now a resistance level. $5.80 looks like the next meaningful support level on the way down, but it's a weak one.
Chiquita Brands International
Nearest Resistance: $14.37
Nearest Support: $14.31
Small-cap produce company Chiquita Brands International (CQB) is up slightly on big volume this afternoon, following news that the firm had agreed to be bought by Brazil's Cutrale Group and Safra Group in a deal worth $14.50 per share in cash. That news comes after an initial $13 offer price from Cutrale-Safra back in August. Shares of CQB had already moved most of the way to their target price in anticipation of a bigger offer.
At this point, the money has already been made on shares of CQB. While there's still a 1% risk premium left in shares, it's too thin of an opportunity for most would-be merger arbitrageurs to take advantage of.
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