4 Big Stocks to Trade (or Not)

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.

>>5 Stocks With Big Insider Buying

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.

>>5 Rocket Stocks to Buy for a Correction Week

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.

Hertz Global Holdings

Nearest Resistance: $31
Nearest Support: $26.50
Catalyst: Call Option Volume

Shares of car rental firm Hertz Global Holdings (HTZ) are up more than 4.7% this afternoon, blasted higher by huge call volume that traded this morning. Hertz August $30 calls saw an 8,000 contract block trade this morning, adding a major bullish bet on the stock that other market participants are piling into in kind.

From a technical standpoint, the move in HTZ isn't completely surprising. Despite a big gap down after the firm's earnings hit earlier this month, the uptrend in shares held for a sixth test of support earlier in the week, making a bounce look likely. The big call buy this morning is just helping shares along.

Now looks like a good time to join buyers. Just keep a protective stop below the 200-day moving average.


Nearest Resistance: N/A
Nearest Support: $8.20
Catalyst: Technical Setup

Finnish cellphone maker Nokia (NOK) is up 2.7% this afternoon thanks to a bullish technical setup that's triggering in shares. After a nine-month battle with a strong resistance level at $8.20, Nokia is finally managing to break out above that long-term price ceiling as buyers overwhelm the glut of selling pressure that's historically been lingering at that price tag.

Now, as NOK pushes into new highs, it makes sense to jump into this trade again.

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. Just be sure to use a tight stop.

Air Products & Chemicals

Nearest Resistance: N/A
Nearest Support: $123
Catalyst: Management Change

Air Products & Chemicals (APD) is getting a 6.7% boost this afternoon, after the firm announced a management change that squares the firm with activist investor Bill Ackman, whose Pershing Square Capital Management took a 9.8% stake in the large-cap chemical maker last year. CEO John McGlade will step aside at the end of the month, to be replaced with Seifi Ghasemi, who joined APD's board last year.

The news is making APD another high-profile name that's breaking out to new highs today, in this case after a sideways consolidation that harangued shares since the start of March. With former resistance at $123 taken out, APD is a high-probability buy this week.

Plug Power

Nearest Resistance: $8
Nearest Support: $4.50
Catalyst: Technical Setup

Plug Power (PLUG) has been one of the most volatile, high-profile names in the small-cap world in 2014, and today is no exception as shares pop more than 13.75% on big volume thanks to a bullish technical move. After rallying hard to start the year, shares spend the last three months correcting -- but today's breakout above $4.50 is giving PLUG a distinctively bullish bent again.

Now shares are just 40 cents from their nearest support level and more than $3 away from their nearest stumbling block at $8. This is still a very volatile name, but for investors who aren't risk-averse, higher ground looks likely from here.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


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At the time of publication, author had no positions in the names mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji

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