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.
Delta Air Lines
Nearest Resistance: $45
Nearest Support: $38
Catalyst: International Weakness Comments
Legacy air carrier Delta Air Lines (DAL) is getting sold off more than 5% in this afternoon's session, dragged lower after the firm reported that excess capacity on some of its international routes was causing the firm to cut fares. Traditionally, international routes are among the most lucrative for an airline, so the fact that Delta is dropping prices doesn't bode well for margins in the coming quarter. That's the catalyst for the selloff in shares of DAL today, and it's spreading to other legacy airlines in kind.
Technically speaking, it's not time to count Delta out just yet. While today's correction is pretty nasty, the primary uptrend in DAL continues to be in effect. Put another way, Delta is still a "buy the dips stock" -- and with shares testing trend line support for a fifth time this year, it makes sense to buy the bounce.
Nearest Resistance: $10
Nearest Support: $8
Catalyst: Analyst Note
Department store retailer J.C. Penney (JCP) is seeing shares trade on big volume this afternoon after an analyst note from Cleveland Research argued that Penney's second-quarter sales trends look positive. JCP is scheduled to announce its official second quarter numbers to Wall Street on Aug. 18, so investors are buying shares today in anticipation of a positive report from management. As I write, shares of JCP are up 3.75% on the day.
J.C. Penney also looks solid from a technical standpoint right now. Long-term resistance at $10 is the breakout level to watch; if shares can catch a bid above that price ceiling, then it's time to expect some extended upside movement in this long-suffering retailer. In my view, JCP doesn't become a high-probability buy until that $10 level gets taken out.
I also featured J.C. Penney recently in "5 Stocks Under $10 Poised to Pop in June."
American Airlines Group
Nearest Resistance: $44
Nearest Support: $40
Catalyst: Delta Sympathy Move
American Airlines Group (AAL) is a good example of another airline that's moving as a result of the Delta weakness comments. As another big legacy carrier, American has exposure to many of the same routes that Delta does, and shares are down more than 4% today as a result.
Even though the uptrend is still intact in AAL, shares are testing trend line support this week, a level that needs to get confirmed by a bounce higher before American Airlines is out of the woods. When and if the bounce happens, buyers have a nice low-risk entry opportunity in this stock.
Nearest Resistance: $50
Nearest Support: $39
Catalyst: Strategic Alternatives
Last up on our list of high-volume names is Shutterfly (SFLY), the small-cap photo publishing service that's up more than 14.6% on the day following news that the firm had engaged investment bank Qatalyst Partners to look for buyers for the company. Investors are bidding up shares on hopes that an acquisition deal could provide a quick, tidy exit from a stock that's dropped 12% in the last year.
While today's pop is certainly welcomed by shareholders, it's not the start of a big momentum shift just yet. SFLY is still hitting its head on the same resistance level that's defined this stock's downtrend all year long. Until shares can break out above those lower highs, sellers remain in control here.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.