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: N/A
Nearest Support: $67.50
Catalyst: Analyst Upgrade
Shares of $183 billion social network Facebook (FB) are up 2.7% on high volume in today's session, boosted by news of an upgrade from analysts at UBS. The upgrade was well-timed; shares of FB were bumping their head on the bank's previous $72 price target. The new target at $90 leaves a lot of upside room in shares right now.
And Facebook looks well-positioned to test that. Shares are breaking out to new highs today, the next logical step in this stock's uptrend. 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 support at $67.50.
Advanced Micro Devices
Nearest Resistance: $4.20
Nearest Support: $3.70
Catalyst: Technical Setup
Shares of Advanced Micro Devices (AMD) are getting swatted lower in today's session, a correction following Friday's big upside action that boosted shares for no reason in particular. AMD has been a volatile name in the last year, making it a popular name for traders and a much less popular name for buy-and-hold investors. And so, while today's throwback to test support looks like a buying opportunity, it's important to buy with caution. From a technical standpoint, AMD has been the king of the "gap and crap" in the last six months.
A break below support is a signal that lows are likely to get re-tested. The problem is that the big gaps that have broken support in the past meant that stop losses didn't stop the losses. Don't buy AMD unless you can put up with that volatility.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.