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: $7.75
Nearest Support: N/A
Catalyst: Social Media Selloff
Groupon (GRPN) is selling off on high trading volume this afternoon, the latest of a series of social media stocks to get knocked lower in the last month. Groupon's 7% decline is worse than most, however -- it's shoving GRPN down through a key support level at $7.75.
With this stock's inability to catch a bid at that level today, it's time to be a seller if you weren't already. "Don't catch a falling knife" may be an overused expression, but it's very valid in shares of Groupon today.
Nearest Resistance: N/A
Nearest Support: $26.50
Catalyst: Analyst Upgrades/Technical Setup
One of the last bastions of strength in this market is Intel (INTC) -- and the world's biggest chipmaker has it in spades today. Shares of the tech giant are up nearly 2% in the face of today's selling following the second upgrade in less than a week today. More important, the boost is shoving Intel to new highs in today's session. That's a buy signal.
Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. If you decide to be a buyer here, it makes sense to keep a tight protective stop in place.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.