3 Big Stocks on Traders' Radars


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.

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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.

Read More: 5 Stocks Triggering Big Breakout Trades

Achillion Pharmaceuticals

Nearest Resistance: N/A
Nearest Support: $8.50
Catalyst: Interim Phase 2 Results

Small-cap drug maker Achillion Pharmaceuticals (ACHN) moved nearly 10% higher to end last week following news that interim phase 2 results for its ACH-3102 hepatitis C treatment showed a 100% response rate in its 12 patient test after 4 weeks. The positive results bring ACHN another step closer to commercializing its treatment.

Friday's technical breakout in ACHN looks buyable here. Shares had been forming a rounding top pattern, and broke through $8.50 resistance to new highs on the phase 2 result update. More upside looks likely in August.

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Gilead Sciences

Nearest Resistance: N/A
Nearest Support: $95
Catalyst: Sovaldi News

A boost of positive news for Gilead Sciences' (GILD) Sovaldi therapy helped shove shares of the $150 billion pharma firm 3.25% higher Friday, putting another biopharmaceutical name on the high-volume list. First, a U.S. arbitration panel ruled in favor of Gilead in a dispute with Roche over use of Sovaldi. Then, the Achillion phase 2 data came out, listing Sovaldi as a component in the ACH-3102 test that the smaller firm conducted. Shares of GILD broke to new highs on the update.

New highs are significant from an investor psychology standpoint because they mean that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. If you decide to buy here, keep a tight stop in place.

Read More: 5 Stocks With Big Insider Buying

Monster Beverage

Nearest Resistance: N/A
Nearest Support: $75
Catalyst: Coke Investment

Alternative beverage stock Monster Beverage (MNST) popped more than 30% on Friday on huge volume, following news that Coca-Cola (KO) had agreed to swap some brands and purchase a 17% stake in the smaller drink-maker in a move designed to increase the firm's exposure to the lucrative energy drink segment. In the move, Coke's energy drink labels will move to Monster, while Monster's tea, lemonade, soda and juice brands will move to Coke.

The deal also leaves room for Coca-Cola to increase its stake in Monster to 25% without seeking board approval from the smaller firm, an arrangement that's getting some long-term Monster investors excited about the possibility of an outright purchase down the road. MNST's huge gap higher on Friday is bullish for this stock's supply/demand tradeoff, but I'd suggest waiting to see where shares settle this week before trying to build a stake here. Shares are far from cheap.

Read More: 5 Breakout Stocks Under $10 Set to Soar

-- Written by Jonas Elmerraji in Baltimore.





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At the time of publication, author had no positions in the names mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji

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