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: $6
Nearest Support: $5.20
Catalyst: Earnings Rebound
It's been a rough week for Groupon (GRPN). In spite of today's 5.5% high-volume rebound, shares of the daily deal site are still down more than 15.7% on the week, following earnings numbers after the bell Tuesday that missed the market. But as buyers pile into shares at lower levels, someone should be waving the caution flag.
Yes, from a technical standpoint, Groupon's leg higher today is auspicious. But shares still have significant resistance at $6 and again at $6.50. With a downtrend that's very much intact right now, it makes sense to stay away from shares until they can catch a bid above the 50-day moving average. Lower levels still look more likely this summer.
Nearest Resistance: $40
Nearest Support: $30
Catalyst: Technical Setup
Twitter (TWTR) is another tech name that's rebounding on big volume today, up 2% following a 16% lockup-induced drop since the start of the week. Twitter's upside is a recovery from oversold territory -- nothing more. Technically speaking, this chart still looks broken, with a strong downtrend intact and an abundance of selling pressure up at $40.
Opportunistic TWTR owners are going to be looking to take recent gains when they can. That supply of shares should keep a lot of pressure on Twitter's share price in the near-term.
Nearest Resistance: $17.75
Nearest Support: $16.25
Catalyst: Failed Rival Merger
A little schadenfreude is driving a big-volume 2% gain in shares of $7.5 billion advertising firm Interpublic Group (IPG) this afternoon. Following news that peers Omnicom Group (OMC) and Publicis Groupe (PUBGY) were canceling their planned $35 billion merger deal thanks to disagreements, IPG is getting a little shot in the arm this afternoon. More than that, shares are testing a significant technical breakout on the headlines.
IPG has been forming a bullish ascending triangle setup in the longer-term bouncing between an uptrending support level to the downside and resistance at $17.75. Today, shares are testing a breakout above that $17.75 price ceiling, signaling a big buy trigger for shares. If you decide to buy IPG here, I'd recommend keeping a protective stop just below the 200-day moving average.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.