BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. Its 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. Its a concept thats 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. 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, heres a look at today's stocks.
Nearest Resistance: $18
Nearest Support: $16.50
Catalyst: Technical Setup/Call of Duty Sales
Despite lower-than-expected sales numbers for Call of Duty: Ghosts this week, video game maker Activision Blizzard (ATVI) is enjoying some buoyancy in today's session. Shares are up close to 3% this afternoon, the result of investors' glass-half-full reaction to the Ghosts numbers, and a bullish technical setup in shares.
Right now, ATVI is forming a rectangle pattern with resistance at $18 and support down at $16.50. The consolidation setup is showing upside bias right now, which means that a move through $18 looks like the most probable outcome for shares in December. When that happens, traders have a buy signal in this video game giant.
Cobalt International Energy
Nearest Resistance: $15
Nearest Support: N/A
Catalyst: Aegean Well Results
Cobalt International Energy (CIE) is getting sold off more than 8% this afternoon, after the firm released a statement that it was plugging and abandoning its Aegean number-one exploratory well in the Gulf of Mexico. CIE's drill didn't find commercial hydrocarbons, which means that it's back to square one for the project. After selling off more than 41% year-to-date, this latest hiccup is far from an ideal way to end the year.
A quick glimpse at CIE's chart is just about all you need to figure out its tradability right now. This resource stock is clearly broken. Resistance is in place at $15, and support is nowhere to be found at this point. If you're looking for a cheap buying opportunity in CIE, wait for shares to establish some semblance of support before you put money in this name; for now, it's a falling knife you don't want to catch.
Nearest Resistance: $6
Nearest Support: $4
Catalyst: Iculsig Drama
Last up is Ariad Pharmaceuticals (ARIA), the small-cap pharmaceutical name that's one of the most heavily-traded names on the Nasdaq this afternoon thanks to the latest bit of drama over its Iculsig drug. ARIA is up 4.5% as I write this afternoon following news that European regulators won't be pulling the drug from the market, after the FDA suspended sales on Oct. 31.
ARIA is currently forming a textbook inverse head-and-shoulders pattern with resistance at $6. A push through the $6 level is a pretty strong buy signal for ARIA. Despite the volatility this stock has seen this year, shares could look a whole lot worse right now. If the trade does trigger, I'd recommend putting a protective stop under 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.
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