4 Big Stocks on Traders' Radars


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.

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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.

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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.

Exxon Mobil

Nearest Resistance: $101
Nearest Support: $93
Catalyst: Q4 Earnings

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One mammoth stock that's seeing high volumes today is Exxon Mobil (XOM). Exxon released its fourth-quarter earnings numbers today, earning profits of $1.91 per share. Analysts had been looking for $1.92 per share. While oil and natural gas production was off by 1.8% from the same quarter a year ago, shares have been creeping their way higher as today's session progresses. But that doesn't mean it makes sense to be a buyer in XOM.

From a long-term perspective, Exxon looks "toppy" right now. Shares are currently forming a head and shoulders top, a bearish setup that triggers on a move through support at $93. For now, XOM is catching a bid, but I'd recommend avoiding shares unless the pattern gets broken before it triggers.

Procter & Gamble

Nearest Resistance: $79
Nearest Support: $74
Catalyst: Technical Setup

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The blue-chip attention is continuing over at Procter & Gamble (PG) -- only Procter isn't getting a reprieve in today's price action. It's getting pushed lower.

Procter & Gamble ended 2013 with a head and shoulders topping setup (like the one in XOM), which triggered at the start of December. Shares started January by reaching their downside target (marked S1 on the chart), only to get shoved down another flight of stairs after earnings earlier this month.

PG is still a prototypical "falling knife." Avoid shares until they can find some semblance of support again.


Nearest Resistance: N/A
Nearest Support: $60
Catalyst: Q4 Earnings

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Things are looking a lot better in shares of Facebook (FB). The social network is up almost 16% as I write this afternoon on the heels of strong fourth-quarter engagement and revenue numbers. FB's 20 cents per share in earnings didn't quite meet analysts' expectations at 27 cents, but the price action indicates that investors didn't really care. The breakout in FB puts shares at new highs today.

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.

If you decide to be a buyer here, I'd recommend keeping a tight stop in place.

Under Armour

Nearest Resistance: N/A
Nearest Support: $90
Catalyst: Q4 Earnings

Last, but far from least, is Under Armour (UA), an athletic apparel stock that's up more than 22% in this afternoon's session after reporting better-than-expected earnings numbers to Wall Street. The firm earned 59 cents per share, beating analysts' average guess by 6 cents. More important, the quarter's results reflected 28% sales growth in one of the most competitive industries on earth.

For traders who aren't too risk-averse, the big breakout in today's session is buyable for the same reasons as Facebook's similar breakout. Just bear in mind that volatility is likely to remain challenging in UA in upcoming sessions.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.



Follow Stockpickr on Twitter and become a fan on Facebook.

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

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