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: $53
Nearest Support: $49
Catalyst: Q1 Earnings
Online auction giant eBay (EBAY) is down more than 4.5% this afternoon, following the firm's first-quarter numbers. eBay earned 70 cents per share in the first three months of 2014, a number that bested analysts' expectations. But the firm's guidance for the second quarter fell short. Analysts were looking for another 70-cent profit, but eBay only guided between 67 cents and 69 cents. The news broke shares down below the uptrend that's been in place since November.
eBay's uptrend hasn't exactly been pretty, but it's been intact with the exception of a big drop back in late November. Today's big gap down indicates that buyers aren't ready to pounce like they have been. That makes lower levels look more likely going forward.
Nearest Resistance: $40
Nearest Support: N/A
Catalyst: Q1 Earnings
Things are looking rough in shares of Twitter (TWTR) this afternoon. After posting its first quarter numbers, investors started hitting "sell," shoving Twitter down more than 11% on the session as I write. While analysts weren't expecting big profits for Twitter (the firm actually beat expectations of a 3-cent loss by breaking even), they were expecting bigger active user numbers than the firm reported. That's spurring a big technical break today.
Twitter gapped down hard on the earnings results this morning, falling through an important $40 support level that had been the all-time low in shares since their IPO late last year. While TWTR is still just barely in the downtrending channel that it's been trading within since December, this stock still looks pretty horrific from a technical standpoint.
If you're looking for a buying opportunity, wait for shares to break out above their 50-day moving average; that level has been a good proxy for resistance for the last three months.
Nearest Resistance: $16
Nearest Support: N/A
Catalyst: AT&T Business Threat
Inflight internet provider Gogo (GOGO) is bouncing on big volume this afternoon, following a huge drop in yesterday's session. Gogo became a fear trade this week when telecom giant AT&T (T) announced that it was entering the inflight connectivity business, a move that poses a major threat to Gogo's chokehold on travelers who need to log in from 30,000 feet.
Don't get too excited about a lower buying opportunity in GOGO. The chart looks just like Twitter's right now. Shares have been stuck in a steep downtrend for the last several months, and yesterday's drop below horizontal support at $16 was a big red flag. Don't buy GOGO until this small-cap can catch a bid again.
Nearest Resistance: $34
Nearest Support: $28
Catalyst: ATK Merger
Mid-cap rocket systems firm Orbital Sciences (ORB) is getting attention for a second straight day, after the firm announced a planned merger with Alliant Techsystems' (ATK) aerospace and defense units. The stock-for-stock merger should close next year, adding significant scale to the combined firm, which will be called Orbital ATK.
Shares of ORB had spent the last two months forming a bullish inverse head and shoulders trade, and yesterday's big rally on the merger news is the breakout that traders have been waiting for. Even though shares are correcting around 3% this afternoon, it still makes sense to buy the breakout once ORB establishes some semablance of support above $29.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.