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: $50
Nearest Support: $40
Catalyst: Technical Setup
Life as a public company has been sweet so far for shares of GoPro (GPRO) -- the wearable action camera company is up more than 50% since its first trades on the Nasdaq market and even more since it priced in the primary market. Today marks another big milestone in the mid-cap tech name: It's the first down day that GPRO investors have experienced. As I write, shares of GoPro are down 10.6% on big volume.
Today's move is a technical one. After getting rejected by resistance up at $50, shares of this far and fast mover and correcting as early actors take gains on this momentum story. $40 looks like the next-closes meaningful support level on an hourly chart. Look for a possible entry opportunity closer to that $40 price floor.
For another take on GoPro, check out GoPro's Future Is Foggy Despite Picture-Perfect IPO.
Nearest Resistance: $58
Nearest Support: $53
Catalyst: Dimon Cancer Announcement
Shares of big bank JPMorgan Chase (JPM) are getting added attention this morning, following news that CEO Jamie Dimon is set to start treatment for throat cancer at Sloan Kettering Cancer Center in New York. The news spurred concerns over a succession strategy at JPM, a firm where Dimon has held the helm for 8 years, and has largely been considered one of the most effective chief executives on Wall Street.
The good news for shareholders (and Dimon's family) is that the prognosis is good for treating the cancer. Less good is the prognosis for JPM's stock. Independent of today's news, shares have been looking "toppy" for the last eight months now, forming a long-term head and shoulders setup. The sell signal comes on a break through support at $53.
Nearest Resistance: $4
Nearest Support: $3.40
Catalyst: Analyst Note
French communications stock Alcatel-Lucent (ALU) is up 3.6% this afternoon, buoyed by an analyst note from JPMorgan that argued recent downside price action in ALU was caused by profit taking, not by fundamental missteps by the company. The note suggested that the recent drop in Alcatel-Lucent's share price provides a good entry point for buyers.
While the fundamentals may be on track at ALU, today's pop in shares doesn't change the fact that this stock is still undeniably in a downtrend. Until shares can catch a bid above trend line resistance, it's best to avoid going long ALU.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.