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: $2
Nearest Support: $1.60
Catalyst: Rescue Deal
RadioShack's (RSH) ongoing rescue efforts are making the firm one of the biggest-volume movers for yet another session – shares of RSH are up 12.6% as I write this afternoon. RadioShack's big leap higher happened on Wednesday, on news that one of the firm's investors, hedge fund Standard General, was talking to the electronics retailer about financing a lifeline that would avoid a bankruptcy filing. Investor excitement over the news has spurred a three-day buying frenzy in RadioShack that's carrying over to today.
From a technical standpoint, the end of this firm's long-term downtrend last week is helping to turn the ship around. With a breakout above $1.60 being tested this afternoon, RSH has a pretty clear path up to resistance at $2. There's still a lot of event risk in RadioShack right now, but for investors who aren't risk averse, there's still upside potential in this stock.
Nearest Resistance: N/A
Nearest Support: $48
Catalyst: Options Volume
Options traders are helping to spur buying in shares of recent IPO GoPro (GPRO) - Get Report this afternoon. An unusually large trade in September $52.50 calls means that a big aggressive bet is being made on the action camera maker. The volume is proving enough to break shares out to new highs, a factor that could help create a self-fulfilling prophecy in GPRO.
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.
Nearest Resistance: $40
Nearest Support: $28
Catalyst: Technical Setup
Tech name FireEye (FEYE) - Get Report is up close to 5% on big volume this afternoon, boosted by technical factors for another straight session. FEYE started off 2014 in a bad way, dropping more than 27% since the start of the year. But now shares are looking "bottomy," and this stock could be in store for higher ground in the second half of the year.
The key level to watch is up at $40. If that resistance level gets taken out, then we've got a signal that buyers are finally back in control of this stock. Stay away from the long side of FEYE until $40 is behind it.
Nearest Resistance: $40
Nearest Support: $26
Catalyst: Q2 Earnings
Software firm Veeva Systems (VEEV) - Get Report is up more than 17% this afternoon, following the firm's second quarter conference call for fiscal 2015. Veeva reported earnings of 9 cents per share, beating analysts' 7-cent best guess. The firm also reported a big hike to its guidance for full fiscal 2015 earnings, hiking its profit range from between 26 cents and 28 cents to between 30 cents and 31 cents.
Technically speaking, now looks like a good time to be a buyer in VEEV, even if you missed today's move. Shares have been forming an ascending triangle bottom for the last several months, and today's breakout above $26 resistance is the buy signal for the pattern. From here, $40 resistance looks like the next meaningful stumbling block on the way up, leaving plenty of room for profit before the next big glut of selling pressure. If you decide to be a buyer, use a protective stop on the other side of the 50-day moving average.
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