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.
Nearest Resistance: $10.75
Nearest Support: $9
Catalyst: Q1 Earnings
BlackBerry (BBRY) is enjoying some upside this afternoon, with shares up more than 7.4% on the heels of bullish first quarter earnings numbers from yesterday. The Canadian handset maker posted an 11-cent loss for the first quarter, but that number still came in 15 cents better than analysts were expecting. Likewise, the firm reduced its cash burn, and actually increased its cash on hand to $3.1 billion thanks to a tax refund and asset sale. Those fundamental improvements are getting investors excited in BlackBerry's stock again in the last two sessions.
And technically speaking, BBRY is starting to look good again too. Shares actually broke out of an ascending triangle pattern on Wednesday, clearing then $9 resistance. From here, the next upside challenge comes up at $10.75. That leaves some room to the upside for traders who want to get in now.
Nearest Resistance: $72.50
Nearest Support: $63.50
Catalyst: Technical Setup
Perennial high-volume name Facebook (FB) is getting extra attention this afternoon, buoyed by a big technical test that shares are undertaking in today's session. FB broke out above the $63.50 level last week, making $63.50 an important price floor for shares. Today, FB is testing whether or not it can catch a bid at that price.
If FB can push above Wednesday's high-water mark, consider the test successful. Otherwise, the next lowest support level at $56 is likely to get tested this summer before buyers get in control again.
Advanced Micro Devices
Nearest Resistance: $5
Nearest Support: $4
Catalyst: Chip Inventory Reports
Advanced Micro Devices (AMD) is getting sold more than 5% lower this afternoon, dragged down after reports that shipments for graphics cards are likely to drop in the second quarter due to high inventories. But while shares of AMD are certainly down this afternoon, shares are far from out. In fact, it looks like buyers are coming up on a stellar opportunity to pick up shares of this $3 billion chipmaker.
AMD has been bouncing its way higher in an uptrending channel since February. Even successive test of trend line support on the way up has been a stellar buying opportunity, and today's selling is bringing us a fifth test of that trend line next week.
Look for a bounce off of the 50-day moving average. If it happens, AMD becomes a buy on the next white bar day.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.