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: $3
Nearest Support: N/A
Catalyst: Q2 Earnings
Social media gaming stock Zynga (ZNGA) is off 6.9% this afternoon, slammed lower following the firm's second-quarter earnings call. Zynga's loss widened to $62.5 million for the quarter, hurt by active user losses and restructuring efforts. More significantly, the firm cut its guidance for the rest of the year, warning that investors should expect more of the same due to delays in new games.
From a technical standpoint, today's drop is nothing new. Zynga has basically been in free-fall since the middle of March, and today's new lows are just the latest in a series of big drops. It makes sense to stay away from the long side of ZNGA until shares can catch some semblance of support again.
For more on Zynga, read "Zynga Plunges: What Wall Street Is Saying."
Nearest Resistance: $19
Nearest Support: $17.50
Catalyst: Q2 Earnings
Graphics card maker Nvidia (NVDA) is up 7% this afternoon, buoyed by positive second-quarter earnings numbers this morning that came in above Wall Street's expectations. Analysts were looking for profits of 26 cents for the second quarter, but NVDA actually earned profits of 30 cents per share. Likewise, the firm forecasts revenues above expectations for next quarter, a stark contrast to the negative fundamental news that's been dominating the graphics card business for the last month.
The problem with NVDA is that most of the technical damage has already been done. Today's pop isn't providing enough buying pressure for shares to clear a resistance range between $19 and $19.50, a level that shares previously failed to hold earlier in the summer. Investors should wait for Nvidia to exit that sideways consolidation before making a bet either way.
Nearest Resistance: $39
Nearest Support: $33
Catalyst: July Traffic Results
American Airlines (AAL) is down slightly on big volume this afternoon, following the firm's July traffic numbers. While the firm grew traffic by 1.1% last month, investors were looking for higher growth rates now that the airline industry is going strong in 2014. Now it makes sense to avoid this name.
AAL has been looking "toppy" for the last week thanks to a classic head and shoulders setup in shares. This week's breakdown is the sell signal. $33 looks like the next stop for shares on the way down.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.