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: N/A
Nearest Support: $86
Catalyst: Stock Split
First up is Apple (AAPL) - Get Report. The tech giant is seeing huge volume this afternoon, the first session following AAPL's 7-for-1 stock split. Apple has been a strong performer in 2014, rallying more than 16% year-to-date, and now there are a variety of psychological factors that could help propel AAPL's stock price further under a lower nominal share price. Academically, AAPL's share price shouldn't factor into its valuation, but the reality is that share price has a very real impact on how investors behave.
Technically speaking, AAPL is well positioned to keep running higher. Shares broke out above resistance at $81, an indication that buyers are in control here. That said, if you decide to be a buyer, keep a tight stop in place.
Nearest Resistance: $63
Nearest Support: $37.50
Catalyst: Acquisition Offer
Hillshire Brands (HSH) is up 5% on big volume this afternoon, tacking onto the total 67% upside that shares have added in the last month following a bidding war over the stock. Ultimately, Tyson Foods (TSN) - Get Report ended up taking home the prize, after bidding $63 per share for the food maker.
That currently leaves a risk premium of approximately 1.8% in shares, meaning that the money has already effectively been made in this name.
Nearest Resistance: N/A
Nearest Support: $8
Catalyst: Acquisition Offer
Idenix Pharmaceuticals (IDIX) is seeing huge volume this afternoon following an acquisition big from Merck (MRK) - Get Report. The big pharma firm is acquiring Idenix for $24.50 per share in cash, a bid that's more than triple the $7 and change that IDIX traded at yesterday. Shares are up more than 232% in this afternoon's session as a result, making IDIX one of the bigger acquisition pops of 2014. Merck's bidding on IDIX in a move to expand its portfolio of hepatitis C treatments, a decision that should have some further-reaching implications in the pharma industry.
IDIX is another name where the money has already been made. Shares currently trade with just a 2% risk premium still priced in. That's too small of an opportunity for most small time merger arbitraguers.
Nearest Resistance: $85
Nearest Support: $65
Catalyst: Analyst Comments
Last up is Gilead Sciences (GILD) - Get Report, a name that's seeing downside action to the tune of 4% this afternoon following news of the Idenix Pharma deal. Analyst notes from Piper Jaffray following the deal identified Gilead as a potential loser from the acquisition, adding more big pharma hepatitis C competition to the space. That's not the first sign of problems at Gilead Sciences, though.
GILD's chart looks "toppy" right now, thanks to a textbook double top setup that's been forming in shares since the end of last fall. The breakdown level to watch in this biopharmaceutical stock is $65. If it gets violated, then GILD becomes a sell.
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 was long AAPL.
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
At the time of publication, author was long AAPL. 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