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: $65
Nearest Support: $55
Catalyst: Q1 Earnings
Social media giant Facebook (FB) is seeing big volume this afternoon after posting its first quarter earnings numbers after the bell yesterday. Facebook reported earnings of 34 cents per share, a number that came in above consensus. Importantly, mobile ads made up almost 60% of total ad revenues, doubling over the same quarter last year. But if Facebook's 1.1% move on big volume seems less than impressive today, a look at the chart is in order.
Facebook has been forming a bearish head and shoulders setup for the last four months, a price pattern that indicates exhaustion among buyers. We're seeing that exhaustion in FB's lack of follow-through today. If shares can't move above the 50-day moving average, the $55 neckline level is the price to watch. If Facebook slips below $55, look out below.