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: $18.50
Nearest Support: $14.50
Catalyst: Brazilian ADR Rally, Analyst Note
Brazilian national oil and gas company Petrobras (PBR) is seeing a big-volume jump today, buoyed by an bullishness across several Brazilian ADRs this afternoon, and an analyst note from Credit Suisse. The investment bank points to May growth at Petrobras as a long-awaited positive for the $97 billion energy stock.
The technicals look strong in PBR for a change. Shares started establishing an uptrend back in early April, and PBR has been bouncing on each test of trend line support since then. With today's bounce coming on a fourth test of support, it makes sense to be a buyer here just keep a protective stop below $14.50 support.
Nearest Resistance: $15.50
Nearest Support: $13.80
Catalyst: Brazilian ADR Rally
Another Brazilian ADR that's getting bid higher today is Itau Unibanco (ITUB), the $76 billion banking stock. ITUB is up more than 3% this afternoon on big volume.
Technically speaking, the price action in Itau Unibanco could be worse, but it's a whole lot less constructive than the uptrend in PBR. ITUB has been consolidating sideways in a rectangle pattern, bouncing in between a pair of parallel trend lines at $15.50 and $13.80. While this stock looks buyable on a move through $15.50, it's best to avoid the sideways churn until that resistance level gets taken out by increasingly eager buyers.
Nearest Resistance: $91
Nearest Support: $89
Catalyst: Analyst Note
Things aren't looking so hot at Deere. (DE) today. Shares of the $33 billion agricultural equipment manufacturer are down 1.2% as I write, following a negative note from JPMorgan. In the note, analyst Ann Duigan points to the potential for Deere and its peers to cut guidance amid deteriorating agriculture fundamentals for farmers, particularly in Europe.
While Deere's 1.2% drop isn't that meaningful on a percentage basis, the level that Deere is testing today is very meaningful. DE has been forming a bearish descending triangle for the last month, and a violation of support at $89 is the trigger to sell this stock. For now, $89 appears to be holding up intraday. Look for a close below that $89 level as a confirmed sell signal.
Nearest Resistance: $31
Nearest Support: $26
Catalyst: Analyst Upgrade
Chinese direct sales company JD.com (JD) is trying hard to rally today, barely up following an analyst upgrade from Oppenheimer this morning. The upgrade comes with a price target at $35, a potential 32% upside from where shares of JD sit today.
While the price reaction may not be overwhelming (shares are barely up 34 basis points as I write), JD.com's short-lived chart at least looks constructive right now. Since going public with its ADR on May 21, JD has established itself in an uptrend, bouncing off of trend line support three times in the last month and change. With the latest bounce happening this week, it makes sense to go long here -- just keep a tight stop in place below $26.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.