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: $11.50
Nearest Support: $10
Catalyst: Afrezza FDA Approval
Mid-cap drug maker MannKind (MNKD) is in the news again, this time following FDA approval of its Afrezza inhaled insulin treatment. The FDA approval and relatively unrestrictive labeling open the door to significant revenue generation when Afrezza hits the market, and that's exactly what investors are betting on this afternoon. Shares of MannKind are up 10% on big volume as I write.
From a technical standpoint, MNKD is testing an important new support level at $11, a price that was previously resistance. If shares can manage to catch a bid at that $11 level (it's still a little too early to tell), then we've got a good indication that buyers are still in control, and it makes sense to buy shares.
If you decide to play the move, keep a tight stop in place.
Nearest Resistance: N/A
Nearest Support: $32.50
Catalyst: Analyst Note
Flash memory maker Micron Technology (MU) is up 3.5% on big volume this afternoon, following a bullish analyst note from Credit Suisse. The investment bank added Micron to its focus list, calling it one of the top investment ideas firm-wide. That vote of confidence was enough to drive extra buying pressure into a stock that's been a major momentum name for a while now. That's sending traders a big buy signal today.
Micron is breaking through near-term resistance at $32.50 in today's session, a move that's coinciding with a bounce off of trend line support. Both of those technical moves make MU a high-probability trade to start the week. This stock may be far from cheap, but momentum looks stellar in Micron right now.
Bank of New York Mellon
Nearest Resistance: N/A
Nearest Support: $36
Catalyst: Activist Stake
Custody bank Bank of New York Mellon (BK) is up 2.3% this afternoon, buoyed by news that activist investor Trian Fund Management has picked up a 2.5% stake in the firm, and is looking to meet with management. Trian's track record, coupled with the large untapped potential of custody banks like BK, is sending shares to new highs on speculation that any proposed changes could drive returns for shareholders.
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.
If you decide to buy here, keep a tight stop in place.
NextEra Energy Partners
Nearest Resistance: $33.80
Nearest Support: $31.60
Catalyst: IPO Follow-through
Last up is NextEra Energy Partners (NEP), a name that went public on Friday as a vehicle for NextEra Energy (NEE) to raise funds for planned wind and solar energy projects. Demand for access to NEP's investments is shoving shares 5.3% higher on big volume to start this week.
While it's still too early to get a technical picture from NEP's very short-term trading history, the 15-minute chart shows that this name is having little trouble finding demand for shares. For now, $33.80 is the resistance level that NEP is having difficulty catching a bid above. If shares can push through that price ceiling, however, then shares look buyable for traders nimble enough to get out at the first sign of weakness.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.