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: $26.50
Nearest Support: $24
Catalyst: Q2 Guidance
Communications stock Ciena (CIEN) are getting attention today after the firm's first-quarter earnings call. CIEN announced an impressive earnings beat, booking profits of 13 cents per share, well above Wall Street's 6-cent consensus estimate. But guidance for next quarter missed the mark, and shares are getting punished in this afternoon's session despite a higher start today. As I write, CIEN is down 4%.
But it could be a lot worse. Shares of CIEN are very close to strong support at $24, a level that's been critical for shareholders since the fourth quarter of 2013. Value-seekers looking to buy CIEN should try to get filled as close to $24 as possible. Shares look very buyable today.
Nearest Resistance: $40
Nearest Support: $32
Catalyst: Audience Growth Slowing
Online radio service Pandora (P) is off by 4% this afternoon, after listerer metrics released last night pointed to slowing growth numbers for listening hours (a number that correlated directly with revenues). But Pandora is another name that's down but not out today's price action has been tight and contained, an indication that buyers have been willing to step in and put a floor in Pandora's price. From a technical standpoint, the bottom line is that P is in an uptrend right now.
While resistance has been a more important level for Pandora than support, the trend is still up and to the right. That means it makes sense to buy the dips.
Nearest Resistance: N/A
Nearest Support: $20
Catalyst: Clinical Study Publication
Sangamo BioSciences (SGMO) is getting a shot in the arm this afternoon after the New England Journal of Medicine published favorable results in the first clinical study of the firm's HIV-fighting genome therapy. The result is a breakout above the $20 level that shares have been consolidating below for the last two months, and that means a resumption of the uptrend. It also puts shares of SGMO 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 stop under the consolidation channel at $18.
American Airlines Group
Nearest Resistance: N/A
Nearest Support: $37
Catalyst: Technical Setup
Last up is American Airlines Group (AAL), the relatively new post bankruptcy version of the air carrier. Put simply, charts don't get much more bullish than the one in AAL right now. As airlines continue to show a bullish streak, a rising tide is lifting all ships -- well, so to speak anyway. That's helping to fuel a 3.6% pop on high volume in AAL this afternoon.
Not only is AAL in a textbook uptrend right now, but the firm is showing a similar uptrend in relative strength. With the broad market pressing up against the top of its range right now, bullish relative strength remains a critical metric to watch.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.