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: $40
Nearest Support: $37
Catalyst: Alibaba IPO
Up first this afternoon is Yahoo! (YHOO), the Internet giant. Shares of YHOO are up almost 4% this afternoon, following news that Chinese marketplace Alibaba is planning to go public in the near-term.
Yahoo! has long been a major shareholder in Alibaba, so the news could provide a huge boost to Yahoo!'s balance sheet this quarter. Reports indicate that the Alibaba IPO could be one of the biggest in history. If that's true, the value that gets unlocked for Yahoo could be very material.
In the meantime, YHOO's chart is set up for some material moves of its own. This stock has been forming an ascending triangle with resistance at $40 for the last two months. A breakout above that $40 level is a buy signal in Yahoo! While a second resistance level at $41.50 swatted shares lower in January, $40 is the more important price level to watch for a breakout.