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."