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 that's 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, here's a look at today's stocks.
Nearest Resistance: $5.25
Nearest Support: N/A
Catalyst: FDA Afrezza Panel
MannKind (MNKD) is off more than 16% this afternoon thanks to news that the firm's Afrezza diabetes product will be facing an FDA panel tomorrow over safety concerns for patients with lung disease. There's a lot on the line with tomorrow's independent panel, and this stock's price action reflects that ramped-up risk profile.
Shares had been bouncing higher in an uptrend for the last several months, but Friday's drop broke the trend. From here, lower levels look like the high-probability outcome for shares of MNKD. The huge event risk over tomorrow's panel makes MNDK difficult to trade without huge risk exposure -- there's more money to be made by waiting for the results to come out, then jumping on the trend.