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: $9
Nearest Support: $8
Catalyst: Technical Setup
Department store chain J.C. Penney (JCP) is a volatile name that's been a favorite vehicle for traders in 2014. But after spending much of the last year getting sold off, shares are finally enjoying some buying pressure. After bottoming at $5, this stock has pushed into a consolidation range with resistance at $9 and support at $8. A breakout above that $9 price ceiling is the next high-probability signal to buy shares.
When it happens, keep a tight stop in place. JCP doesn't trade as "gappy" as AMD does, so stops offer much better downside protection.
Nearest Resistance: $185
Nearest Support: $165
Catalyst: 2014 Guidance Boost
Alexion Pharmaceuticals (ALXN) is up more than 5% this afternoon, following a boost in guidance that lifted the firm's earning outlook to a range of $4.37 to $4.47 for 2014. That increases EPS by approximately 20%, a material boost in profitability that investors are reacting to with buying.
ALXN has been a big momentum name in recent months, but shares have been starting to look "toppy" after rolling over in February. The key level to watch is $165. If shares slip through support at that level, ALXN becomes a strong sell.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.