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: $75
Nearest Support: $72.50
Catalyst: Technical Setup
Facebook (FB) is seeing high volume this week for technical reasons, as shares move up to test new highs in August. Facebook has looked bullish since the middle of May, and the uptrend is very much intact this month.
$75 is the line in the sand to watch in shares of FB. If increasingly eager buyers can push this stock through the $75 level, then expect more upside. For investors who aren't risk-averse, that's the signal to add onto your Facebook stake.
Nearest Resistance: $11.50
Nearest Support: $10.50
Catalyst: Earnings, Analyst Downgrades
Fiber optic networking stock JDS Uniphase (JDSU) saw an 8% drop yesterday, dragged lower by weak earnings, a guidance cut for next quarter and accompanying analyst downgrades. While analysts had been looking for profits of 13 cents for the quarter, JDSU actually posted an 11-cent loss. That spurred B. Riley to cut the stock to "neutral."
Support at $10.50 looks like the next stop lower for JDSU. I'd recommend against trying to build a position there unless buyers come in to spur a bounce.
Nearest Resistance: $10
Nearest Support: $8.50
Catalyst: Pre-Earnings Speculation
Finally, J.C. Penney (JCP) is getting attention this morning thanks to speculation over second quarter earnings. This stock has been looking "bottomy" long-term from a technical standpoint, but it could take a fundamental catalyst in earnings to break shares above long-term resistance at $10.
For their part, analysts are expecting a 90-cent loss after the bell this afternoon, with revenues expected between $2.66 billion and $2.86 billion. If shares can clear $10 after the news hits, more upside becomes a high-probability trade.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.