4 Big Stocks to Trade (or Not)

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.

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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.

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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. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

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Groupon

Nearest Resistance: $5.50
Nearest Support: $3.75
Catalyst: Earnings Miss

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Groupon ( GRPN) missed earnings -- quelle surprise. Shares of the social deal stock are down around 20% as I write following a 1-cent loss for the fourth quarter and a less than amazing outlook for the quarter ahead. Let's be clear, Groupon hasn't exactly been a bastion of fundamental strength since it went public in late 2011. That said, the amount of negative surprise we're seeing in shares today is, well, surprising.

More significant is the technical outlook that this stock is now showing off. Groupon gapped down hard this morning, shoving its way down through a handful of weaker support levels. In short, this stock is having some serious trouble catching a bid. Investors looking for a "bargain" to buy GRPN need to look elsewhere.

American Capital Agency

Nearest Resistance: $32
Nearest Support: $31.50
Catalyst: Share Offering

$11 billion real estate investment trust American Capital Agency ( AGNC) is another stock that's getting sold off in today's session, albeit for a different reason. AGNC is off around 3% this afternoon following a share offering announcement -- the firm announced yesterday that it planned to sell 50 million shares on the open market. Offerings are rarely positive because they indicate a pressing need for cash and dilute existing owners' stakes; Mr. Market is reacting expectedly.

From a technical standpoint, the news derailed the near-term uptrend that shares have been enjoying since November. While that doesn't mean that shares are likely to drop from here (they're very close to support at $31.50), I'd recommend for a floor to get established before jumping onboard this name.

Molycorp

Nearest Resistance: $11.50
Nearest Support: $6
Catalyst: Filing Delay

Molycorp ( MCP) may be trading more or less even on the day, but don't mistake that for a lack of interest; this rare earth mining company is one of the most active stocks trading on the NYSE today. Molycorp is getting attention after announcing that management is delaying filing their annual report with the SEC and postponing its earnings call with investors. Unexpected filing delays are rarely a good thing; often, they involve material unexpected changes to firms' financials, and rarely good ones at that.

Until the report gets filed, the exact reason remains anyone's guess. Technically, shares are sitting right at support at $6, a key level that investors should be keeping a close eye on. If MCP closes below that $6 mark, I'd recommend being a seller -- the technicals haven't looked good for this stock in a long time. A silver lining comes from resistance well overhead at $11.50. If MCP can impress investors on their next call, the firm has a lot of space to move higher before hitting selling pressure.

Vale

Nearest Resistance: $19.50
Nearest Support: $19
Catalyst: Q4 Earnings

Mining giant Vale ( VALE) announced positive fourth-quarter earnings, earning the distinction of being one of the few earnings names that's actually seeing its share price increase today. That price action is significant because it hits the brakes on a selloff that's been pushing shares lower since the first trading session of 2013. As Vale attempts to push through nearby resistance at $19.50, investors will get their first glimpse at whether this stock can still court buyers in a market where commodities are starting to lose luster.

A breakout above $19.50 is a buy signal for VALE.

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.

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