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: $42
Nearest Support: $39
Catalyst: Q4 Earnings
Enterprise software giant Oracle (ORCL) is getting hammered 4.3% lower this afternoon, after the firm's fourth-quarter numbers fell short of Wall Street's expectations. Oracle earned 92 cents per share for the quarter, a number that came in short of the 95-cent consensus best guess from analysts. Despite some positive ground made in sales growth over the last year, investors are selling off Oracle today.
From a technical standpoint, it makes sense to join the sellers right now. ORCL spent the better part of the last year bouncing its way higher in an uptrending channel, but that channel broke on this morning's gap lower. While support's relatively nearby at $39, I wouldn't count on shares catching a bid at that level.
Wait for Oracle to establish some semblance of support before you look for a bargain entry point.