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.
Strategic Hotels and Resorts
Nearest Resistance: $11.50
Nearest Support: $10.40
Catalyst: Offering, REIT Drop
$2.2 billion REIT Strategic Hotels and Resorts (BEE) is down close to 4% on huge volume this afternoon, slapped lower on the heels of a 36 million-share offering that priced at $10.50 per share. The drop is getting a little extra downside momentum from Treasuries -- REITs are correcting as a sector today. But the key word here is correction; looking longer-term, the trend for BEE and - the rest of the REIT space - is unmistakably up.
BEE has been bouncing higher in an uptrending channel for the past several months, moving up on every successive test of trend line support. Now, the high probability move is to buy BEE's next bounce off of support. Shares could correct down to $10.40 support without threatening that uptrend.
Nearest Resistance: $40
Nearest Support: $27
Catalyst: Analyst Upgrade
Long-suffering Twitter (TWTR) investors are getting a reprieve this afternoon, thanks to a 5% jump in the microblogging network's share price. Twitter is up on big volume this afternoon thanks to an analyst upgrade from Nomura -- the bank upped its view of Twitter from neutral to buy. But don't confuse today's pop in shares with a big change in trend.
Technically speaking, TWTR still looks very bearish. Shares have been bouncing lower in a textbook downtrend since the start of 2014, and today's move up looks like a drop in the bucket by comparison. TWTR could move all the way up to $40 without threatening its downtrend. Buyers should avoid going long this name until shares can break out.
Michael Kors Holdings
Nearest Resistance: $100
Nearest Support: $92
Catalyst: Q4 Earnings
Apparel name -- and occasional Rocket Stock -- Michael Kors Holdings (KORS) is seeing big volume this afternoon following the firm's fiscal fourth quarter earnings release to Wall Street. KORS earned 78 cents per share in the fourth quarter, beating the consensus best guess of 68 cents. And while today's price action has been anything but definitive, KORS has been recovering over the course of the session as investors digest what the earnings numbers mean for the year ahead.
KORS' chart still looks attractive at this point. Shares have been bouncing higher in a recently-formed uptrend, and they're holding that trend line support level in today's session. As long as Michael Kors can continue to catch a bid above $92, this is a "buy the dips" stock.
Nearest Resistance: $32
Nearest Support: N/A
Catalyst: Q1 Earnings
Shoe retailer DSW (DSW) is getting utterly shellacked this afternoon, down more than 27% following the release of its first quarter earnings numbers. DSW earned 42 cents per share last quarter, falling short of 48-cent expectations from analysts.
There's no question: This chart is broken heading into the summer. While DSW started the year trending lower, today's huge gap down knocked out any semblance of support in shares. Now, there's a lot more downside risk for shareholders to contend with. New buyers would do well to stay away until the sellers are done with this name.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.