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: $38
Catalyst: Technical Setup
Recently relisted airline stock American Airlines (AAL) - Get Report has been lagging the rest of the industry for the month of March, but things are finally looking up thanks to a technical setup that's triggering a buy signal in shares this afternoon. AAL spent its first few months of trading in a solid uptrend, but that buying pressure fizzled out in the second week of last month.
Today, though, AAL pushed up above that short downtrend, an indication that buyers are bidding up shares again. With relative strength in the airline industry looking stellar in 2014, AAL is an ideal way to take advantage of that momentum this week.
Nearest Resistance: N/A
Nearest Support: $460
Catalyst: FDA Device Approval
Intuitive Surgical (ISRG) - Get Report is up big for a second day, following news that the FDA had cleared the firms new da Vinci Xi surgical robot for use. That's the first FDA-approved upgrade to ISRG's popular robotic surgery platform in five years, and it should drive revenue as medical facilities look to take advantage of the new capabilities that this latest iteration of the system provides. Shares gapped up to new highs on the news.
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. If you decide to be a buyer here, it makes sense to keep a stop in place under $460 support.
Nearest Resistance: $4.20
Nearest Support: $3.60
Catalyst: Analyst Upgrade
Paris-based communications stock Alcatel-Lucent (ALU) is up 2% today on big volume, following an upgrade from French financial firm Natixis upgraded the firm to "buy." But investors should be wary of that call. Shares are fast approaching a price level that's swatted ALU lower on every previous test.
ALU is currently in a downtrend. The fact that it's bouncing up towards trend line resistance, makes it more likely to be another optimal time to sell this stock than a good time to be a buyer. If shares bounce lower in tomorrow's session, it's time to join the sellers.
Nearest Resistance: N/A
Nearest Support: $38
Catalyst: Positive Medicare Surprise
Finally, shares of Myriad Genetics (MYGN) - Get Report are up more than 13% this afternoon, following news that Medicare price cuts for the firm's genetic sequencing were going to be less than expected. The news reversed the price slump that's pushed shares down as low as $32 in March. Today's breakout above former resistance at $38 is a solid buy signal for MYGN now that it's sitting at new highs.
As always, it makes sense to keep a tight stop in place if you decide to jump into Myriad Genetics here, but the momentum looks pretty indisputable right now.
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 stocks 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