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: $37.50
Nearest Support: $34
Catalyst: Technical Setup
2014 has not been kind to General Motors (GM). Since the calendar flipped to January, the automaker has slid almost 15%. More significant, despite buoyancy in the markets for the last few sessions, shareholders haven't gotten a reprieve -- shares fell another 3.35% in Monday session.
While there are a lot of rationales for that, ranging from CEO Mary Barra's pay to rising vehicle inventories to weak January sales numbers, the bottom line is that this chart is broken. The technicals are the most important factor to keep an eye on right now.
GM is in a well-defined downtrend right now, and the hint of a consolidation here isn't an excuse to buy. That will only come when the downtrend gets broken.
Nearest Resistance: $4.75
Nearest Support: $4.40
Catalyst: Technical Setup
Zynga (ZNGA) is another technical trade to watch this week. The social media video game maker has been a perennial high-volume name, thanks to attention on big partner Facebook (FB) -- and now, both companies' charts are looking bullish.
For Zynga, the next high-probability buying opportunity comes on a move through that dashed resistance line at $4.75. While shares flirted with that price tag on Monday, they have yet to hold a close above it. When $4.75 gets taken out, it's a good indication that buyers are finally in control.
Green Mountain Coffee Roasters
Nearest Resistance: $111
Nearest Support: $100
Catalyst: Coca-Cola Deal
Talk about a short squeeze. Shares of $16 billion coffee company Green Mountain Coffee Roasters (GMCR) are up big in February, after the firm announced beverage giant Coca-Cola (KO) had purchased a 10% stake and would be partnering on the firm's upcoming Keurig Cool in-home bevergage machine.
After the initial price explosion three sessions ago, shares of GMCR have been consolidating in a channel, bouncing between round number support at $100 and resistance at $111. Even if you missed the move, the momentum is undeniable in GMCR right now. A breakout above $111 is the next high probability buying opportunity.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.