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: N/A
Nearest Support: $28.50
Catalyst: Guidance Hike
First up is Intel (INTC), a name that spiked 6.8% on Friday thanks to a boost in guidance for the second quarter. Intel announced that it expects revenue to fall between $13.4 and $14 billion next quarter, a number that came in above analysts' best-case forecast of $13.02 billion. That news broke shares of Intel out to new highs at Friday's open.
New highs are significant from an investor psychology standpoint because they mean that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses.
Intel's breakout is buyable here this week, but it makes sense to keep a tight protective stop in place.
Nearest Resistance: $19.70
Nearest Support: N/A
Catalyst: Q1 Earnings
Things aren't looking so hot in shares of communications stock Finisar (FNSR). The $1.9 billion firm dropped 22% on Friday after posting its first-quarter numbers. Finisar earned 36 cents for the quarter, falling short of the 38-cent earnings that investors were expecting. Worse, guidance for next quarter came in below expectations, giving sellers extra reason to unload a stock that's been lagging the broad market this year.
FNSR has been looking "toppy" for effectively all of 2014, forming a longer-term head and shoulders top pattern. The setup officially triggered on Friday's break below the neckline at $23. From here, look out below. Bargain hunters should avoid this name until shares can establish some semblance of support again.
Nearest Resistance: $6.50
Nearest Support: $5.50
Catalyst: OPEN Sympathy Mover
Shares of daily deal site Groupon (GRPN) enjoyed a surprise high-volume bounce last week, buoyed by the news of peer stock OpenTable (OPEN) getting acquired for a hefty premium on Friday. Groupon's 4% climb isn't that remarkable -- but the implications of a nearby breakout are looking a whole lot more meaningful right now.
Groupon has spent the better part of the last year in a downtrend, bouncing its way lower on every test of trendline resistance. Now, though, shares are starting to carve out an ascending triangle bottom. The breakout level to watch is $6.50. If shares can catch a bid above that price level, GRPN becomes a high-probability buy.
Nearest Resistance: $16
Nearest Support: $14.50
Catalyst: Intel Sympathy Move
Hewlett-Packard (HPQ) is taking a cue from Intel following the chipmaker's big pop last week. With increasing PC volume cited as a potential catalyst for Intel's guidance increase, Hewlett-Packard closed into strength last week on hopes that the PC giant would see its own revenues come in higher than expected.
H-P has been bouncing its way higher in a textbook uptrending channel for all of 2014, rallying more than 25% since the calendar flipped to January. With the uptrend very much intact in June, H-P remains a "buy the dips stock." Shares dipped most recently last week, and that means that this name should outperform again in the near-term. I'd recommend keeping a stop at the 50-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.