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: $8.70
Nearest Support: $7
Catalyst: FDA Committee Approval
Small-cap biopharmaceutical stock MannKind (MNKD) is grabbing the headlines this afternoon, up more than 78% following a positive outcome from the FDA penal reviewing its Afrezza diabetes device. The committee voted 13 to 1 in favor of allowing MannKind to market the device to patients with type 1 diabetes and voted unanimously to allow the firm to market Afrezza to type 2 patients. The decision gapped shares up hard this morning, but, as I said on Monday, the event risk made the decision hard to trade without being exposed to significant risk.
The money has already been made on the MNKD trade. Investors should wait to see how the price action develops before jumping into shares.
Nearest Resistance: $21
Nearest Support: $18
Catalyst: New Pay Plan/Gold Rally
Gold mining giant Barrick Gold (ABX) is up more than 4% on big volume this afternoon, buoyed by the combination of a new pay plan for executives and an ongoing intermediate-term rally in gold prices. Earlier this week, Barrick announced that it was changing its executive compensation plan, switching the majority of pay for top executives to equity units that convert into ABX shares. Between that news and growing gold prices, buyers and piling into this stock today.
But that could be just the beginning. Shares of Barrick Gold are forming a bullish technical pattern in the longer-term, with the potential for considerable upside on a breakout above $21 resistance. This stock has a long way to go until that long-term buy signal gets close to triggering, but this week looks like a good early buying opportunity. Just keep a tight stop under $18 support.
Nearest Resistance: $16.50
Nearest Support: $15.75
Shares of steel stock ArcelorMittal (MT) are off by 2.7% this afternoon on big volume, the aftermath of an analyst downgrade from Credit Suisse that comes on top of existing concerns about rising steel production costs. MT's downgrade to "hold" comes with a $17 price target.
From a technical standpoint, MT could look a lot worse, though. Shares have been trading in a narrow uptrend since the middle of March, and now they're well-positioned to bounce off of that trendline support level. It makes sense to buy the bounce in MT.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.