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: $9.80
Nearest Support: $9.30
Catalyst: Q2 Earnings
Mid-cap regional bank Huntington Bancshares (HBAN) is up 3.6%, following a second-quarter earnings release that beat analyst estimates. The Ohio-based banking stock beat 18-cent expectations by 1 cent, and it took in $716.8 million in sales for the quarter.
Nearest Resistance: $13.20
Nearest Support: $12.50
Catalyst: Q2 Earnings
Swedish communications equipment maker Ericsson (ERIC) is up 8.2% as I write this afternoon, thanks to second-quarter earnings numbers that beat expectations. Analysts had been hoping for sales of 52.5 billion kronor, but Ericsson actually generated 54.8 billion kronor of revenues. Likewise, gross margins came in 0.9 percentage points higher than the consensus bet.
Technically speaking, today's earnings reaction is overwhelmingly positive for ERIC, a stock that's been stuck in a downtrend since the beginning of April. Today's big gap higher broke that downtrend, and it puts this stock's trajectory higher for the second half of the year. The next potential stumbling block for shares comes at $13.20.
Nearest Resistance: $18
Nearest Support: $16
Catalyst: Brazilian Runoff Election
Shares of Brazilian national oil company Petrobras (PBR) are up 5% this afternoon, following a Datafolha poll that shows results of a run-off vote in Brazil are too close to call. The potential ouster of Brazilian president Dilma Rousseff in favor of a more business friendly leader is spiking shares of the country's equity market this afternoon. The Ibovespa index is up 2.7% as of this writing, and PBR is doing one better thanks to its longest wining streak since 2009.
Today's breakout in PBR is a textbook technical buy signal. Shares cleared $16 on the poll results, and now buyers are definitively in control of this stock. If you decide to buy this move, keep a tight stop in place.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.