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: $99
Nearest Support: $93.50
Catalyst: Technical Setup
Technology giant Apple (AAPL) is bouncing for technical reasons this afternoon, moving higher after a touch of trend line support on Friday. Apple has been a "buy the dips stock" for a while now -- and it's looked bullish both fundamentally and technically for the better part of the last year.
Today's bounce higher is giving traders a low-risk buying opportunity for the fourth time since the summer started. Look for a test of highs at $99 later this month.
Nearest Resistance: $15
Nearest Support: $13.50
Catalyst: Q2 Earnings
Shares of Dean Foods (DF) are selling off hard this afternoon, following serious black clouds over the firm's second-quarter earnings call. Management characterized the current environment as the most difficult in the firm's history, and withdrew its guidance for the full year. For the second quarter, Dean Foods lost 14 cents per share, versus an estimated 6-cent loss per analyst consensus.
Technically speaking, DF has looked rough for a while now. Today's 6.5% selloff broke shares through a key support level at $15, triggering a lot of downside risk on the move lower. Stay away from the long side of Dean until this stock can catch some semblance of support again.
Nearest Resistance: $13
Nearest Support: $7.50
Catalyst: Technical Setup
Last up is HiMax Technologies (HIMX), a small-cap LCD maker that's moving on big volume this afternoon thanks to a technical breakout in shares. HIMX started the summer looking "bottomy," with a textbook double bottom setup that triggered at the start of August. Today's move through the $7.50 level is a secondary breakout that's significant because it clears the way to the next-nearest resistance level at $13. That's a lot of upside potential left unimpeded by pockets of supply.
For traders who aren't risk-averse, now looks like a good time to start trading into HIMX. If you decide to buy here, 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.