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.
Without further ado, here's a look at today's stocks.
Nearest Resistance: $18
Nearest Support: $17.50
Catalyst: Q2 Earnings
Ford Motor (F) is seeing a second-quarter earnings as a big volume catalyst this afternoon. Ford is only up 0.34% as I write this afternoon, but shares are seeing significant participation after posting 32 cents per share in profits. Adjusting for one-time costs, those earnings came in at 40 cents, compared to the 36-cents that analysts were hoping for.
From a technical standpoint, Ford's chart looks solid. Momentum is holding an uptrend that's been intact since the beginning of February, and the price uptrend that accelerated at the start of the summer is holding strong. Those factors make Ford a perfect example of a "buy-the-dips stock."
Nearest Resistance: $6.25
Nearest Support: $5
Shares of cancer therapy firm Ariad Pharmaceuticals (ARIA) are up 5.4% on big volume this afternoon, following up a substantial move yesterday that was reportedly triggered by a fake tweet from an account claiming to be a Deutsche Bank biotech trader. The tweet hinted at a possible deal between Aria and Shire (SHPG). Since the tweet went out, the account has been suspended, but shares of Aria have continued to extend their gains into the afternoon on Thursday.
From a technical standpoint, this isn't a name I'd recommend holding on to right now. Shares of ARIA have been bouncing their way lower in a very well-defined downtrending channel for the last five months now -- and with shares pressing against trend line resistance for the tenth time over the course of the setup, now looks like a good time to take gains, not add on to a position.
Nearest Resistance: $38
Nearest Support: $35.50
Catalyst: Q2 Earnings
General Motors (GM) reported its second-quarter earnings numbers this morning, earning 58 cents for the quarter. That EPS result came in 1 cent short of analysts' estimates -- and performance issues in markets like Latin America are helping to spur a selloff into this afternoon. GM is down 3.7% on big volume as I write.
GM is showing some technical cracks as well. The firm is forming the early stages of a head and shoulders top, a bearish pattern that triggers if $35.50 gets violated to the downside. If shares can't catch a bid above that $35.50 line in the sand next week, look out below.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.