4 Big Stocks on Traders' Radars


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.

>>5 Stocks Set to Soar on Bullish Earnings

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.

>>5 Ways to Profit From a Crowded Short Trade

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.

J.C. Penney

Nearest Resistance: $9
Nearest Support: $8.50
Catalyst: Technical Setup

Retail giant J.C. Penney (JCP) is down 2.5% this afternoon on big trading volume, the latest swing in a stock that's been a perennial high-volume name all year long. And despite today's slip in price action, JCP is looking bullish this month. That's because shares are currently forming an ascending triangle, a bullish price setup that's formed by horizontal resistance above shares at $9 and uptrending support to the downside.

$9 resistance is the key level to watch right now for JCP. If buyers can push shares above that price ceiling, we've got a buy signal for J.C. Penney.


Nearest Resistance: $60
Nearest Support: $50
Catalyst: Technical Setup

FireEye (FEYE) is bouncing on big volume this afternoon, up more than 3% after getting shellacked amid this month's selloff in momentum stocks. FireEye spent the entire stretch since December in rally mode, tripling over that period as investors piled into "new tech" names -- and that's exactly why it's been selling off ever since.

It's a little early to tell if we're witnessing a change in trend for FEYE this week; shares are still stuck in the downtrending channel that they started in a month ago. But strong support at $50 adds some extra confidence to the upside trade when and if the channel in FireEye gets broken topside.

As long as that downtrending channel remains intact, it's best to stay away from shares.

E*Trade Financial

Nearest Resistance: $24
Nearest Support: $20
Catalyst: Analyst Upgrade

Investors in E*Trade Financial (ETFC) are enjoying a nearly 4% shot in the arm this afternoon, on the heels of an analyst upgrade from Bank of America Merrill Lynch. BAML raised their rating on ETFC from neutral to outperform, tacking gains onto a name that's already been doing just that for the past year. Over the trailing 12 months, shares of E*TRADE have more than doubled.

From a technical standpoint, ETFC is starting to look "toppy" in the longer-term. Shares are forming a head and shoulders top with a neckline currently at $20. It's a longer-term sell signal however, and ETFC will just need to move through $24 resistance to invalidate it. Shorter-term, buyers look in control again.

First Solar

Nearest Resistance: $75
Nearest Support: $67.50
Catalyst: Technical Setup

A technical setup in First Solar (FSLR) is putting plenty of eyes on this solar giant, despite the lack of a big trading range this afternoon. FSLR is consolidating sideways in a rectangle pattern right now, bleeding off momentum after a very big move higher. In a sense, FSLR's price action is a prolonged hangover from the big breakout shares made last month after it released bullish guidance. Consolidations are very common after such a big leg up -- and that's what makes it tradable from here.

The key price levels to watch in FSLR are resistance at $75 and support down at $67.50. Basically, if FSLR exits that range, it's time to make a bet in the direction of the breakout. The most likely outcome here is a push through that $75 resistance level That's a buy signal when it happens.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.





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At the time of publication, author had no positions in stocks mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji

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