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 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: $8
Nearest Support: $5
Catalyst: Technical Setup
Shares of department store retailer J.C. Penney (JCP)continue to see volatile price action today, down 2.7% on no real news to speak of. Instead, the technicals are ruling the daily swings in this stock.
A quick glance at a chart of JCP tells you that this isn't a name you want to own right now. Trend line support remains very strong to the upside at $8, while the latest swing low at $5 is questionable.
Don't try to buy JCP cheap. It could get cheaper in the near-term.
Nearest Resistance: $36
Nearest Support: $31
Catalyst: Q4 Earnings
General Motors (GM) missed investors' targets for the fourth quarter, earning 67 cents per share. Wall Street was looking for earnings to come in at 87 cents.
Even though GM is taking the earnings news in stride this afternoon, the chart looks rough. A lot of demand for shares of GM has gotten sapped from the market in the last month and change, and shares officially broke their uptrend at the start of this week.
Until GM can recapture resistance at $36, the sellers are the ones who remain in the driver's seat.
Nearest Resistance: $7.75
Nearest Support: $7
Catalyst: Technical Setup
Last up is Nokia (NOK), a name that's up almost 3% on technical strength of its own. Nokia has been challenged by some seriously problematic fundamentals in 2014, gapping down hard on earnings at the end of January. But today's breakout through resistance at $7 is signaling a buy in the short-term.
There's no question that NOK is still looking weak on a lot of fronts, but if you're a trader with a shorter-term timeframe, consider this move buyable. Just keep a tight stop in place under $7. If shares can't catch a bid there anymore, it's time to look out below in Nokia.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.