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.
Nearest Resistance: $27
Nearest Support: $23.75
Catalyst: Q3 Earning
General Electric(GE) - Get Report is up more than 3% this afternoon, boosted by its third-quarter earnings release. GE announced profits of 38 cents for the quarter, coming in just above analysts' consensus estimates of 37 cents. After tumbling to a key prior support level at $23.75 during the market correction of the last few weeks, today's big bounce is pointing to another test of $27 resistance.
For now, GE is stuck trading sideways in that wide channel. Wait for $27 to get taken out before you buy.
Nearest Resistance: $2.40
Nearest Support: $1.40
Catalyst: Ebola Fears
Shares of small-cap biotech name iBio(IBIO) - Get Report are up more than 26% this afternoon, boosted by the announcement that the firm would be offering its antibody technology to the U.S. government to manufacture experimental drugs designed to fight the Ebola outbreak. The potentially far-reaching implications of Ebola, coupled with this stock's tiny market capitalization, is spurring the huge pop today -- just the latest of many.
IBIO's price action has gone parabolic since August, but shares are hitting an upside barrier at prior highs today. If shares can clear resistance at $2.40, then the rally could have more legs, but this name is best left to more nimble traders.
Nearest Resistance: $70
Nearest Support: $48
Catalyst: Energy Bounce
You don't have to be an expert technical trader to figure out what's been going on with Halliburton's(HAL) - Get Report chart. This oilfield servicer has gotten utterly shellacked in the last couple of months, dragged lower by a major breakdown in energy prices. Basically, as energy companies get less for the assets they pull out of the ground, fewer projects become economically feasible, and demand for HAL's services drops. That's what we've seen play out on an accelerated pace in this stock's chart.
But today's big bounce is forming what looks like a V-bottom in shares of Halliburton. Now looks like a reasonable time to consider buying HAL, but it's critical to keep a tight stop under this week's lows. Energy prices are still looking bearish here.
-- 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