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: $7
Nearest Support: $6
Catalyst: Earnings Speculation
First up is daily deal site Groupon (GRPN), a name that's up 7.5% on big volume as I write this afternoon, ahead of the firm's second-quarter earnings release after the bell tomorrow. Offsetting the price jump in GRPN is amplified options volume: $5 and $6 puts are trading almost three times their normal volume as investors pile into hedges against earnings surprises. As interesting as the big lottery ticket of pre-earnings bets in Groupon may be, this stock's chart is the real story.
After selling off all year long, Groupon is starting to look "bottomy." Shares are forming an ascending triangle bottom with resistance at $7 as a breakout level. If shares can close the gap to break above $7 in tomorrow's session, expect a lot more upside in this deal stock.
For another take on Groupon, check out "5 Breakout Stocks Under $10 Set to Soar" and "Why Groupon's Turnaround Plans Will Be a Great Deal for Investors."
Michael Kors Holdings
Nearest Resistance: $85
Nearest Support: $70
Catalyst: Q1 2015 Earnings
An earnings beat isn't helping at apparel company Michael Kors Holdings (KORS) today. Shares are selling off more than 6.6% this afternoon following news that margins are contracting on the luxury handbag and accessory maker's income statement. KORS reported fiscal first-quarter profits of 91 cents, versus estimates that came in down at 81 cents. Likewise, the firm boosted its full year forecast to between $4 and $4.05 -- but none of that curbed today's selling.
From a technical standpoint, this chart hasn't looked good since the beginning of July. Now, shares look likely to move down to test support at $70. KORS is best avoided for the time being.
Nearest Resistance: $7.50
Nearest Support: $6
Catalyst: FCC Spectrum Comments
Cellular carrier Sprint (S) is down 2.4% this afternoon, swatted lower following comments from FCC Chairman Tom Wheeler that proposed blocking the firm's plan to jointly bid on spectrum in the 600 MHz auction with T-Mobile (TMUS). Wheeler claimed that Sprint's bid for spectrum wasn't competitive.
As usual, the technicals are having no small part in contributing to the selloff. Sprint previously broke through key support at $7.50 two sessions ago, and now that level is a key resistance level for shares. With a prior price floor taken out, a test of support at $6 looks a lot more likely than higher ground in August.
As of the most recently reported quarter, Sprint was one of John Paulson's top holdings.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.