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. 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: $44
Nearest Support: $40
Catalyst: Earnings Beat
First up is discount retailer Five Below (FIVE). Shares of FIVE are up more than 13% this afternoon following a 31% increase in fourth-quarter profits. The firm earned profits of 45 cents a share, a number that came right in the middle of its previously issued guidance. With 62 new stores planned for this year, investors are bidding up shares on hopes that FIVE's growth trajectory will keep up.
From a technical standpoint, today's breakout in FIVE is a bullish signal. Shares had been forming an ascending triangle bottom for the last couple of months, but that triggered and reached its price objective today. Looking forward, if shares can crack newfound resistance at $44, it's a buy signal.