3 Huge Stocks Everyone Is Talking About

 

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.

Bank of America

Nearest Resistance: $16
Nearest Support: $15
Catalyst: Technical Setup

A rising tide lifted all ships to start the week, a fact that was especially true for perennial high-volume names such as Bank of America (BAC) . BofA popped 1.5% on technical buoyancy yesterday, helping to distance itself from the swing low that shares set back at the beginning of August. That brings the big bank another step closer to a test of its next resistance level at $16.

The higher lows that Bank of America has been making look promising, but it makes sense to wait for buyers to propel shares above $16 before jumping in. After that happens, $15 is a good place to set a protective stop.

Advanced Micro Devices

Nearest Resistance: $4.80
Nearest Support: $3.70
Catalyst: Technical Setup

Advanced Micro Devices (AMD) was another conventional high-volume stock that saw a bigger-than typical pop on yesterday's rally. As with BofA, the move was driven by the technicals. AMD has been bouncing its way higher in a well-defined uptrending channel for the last year, and yesterday's 2% jump extended the progress from the most recent support bounce.

From here, AMD remains a "buy-the-dips stock." Look to add onto positions below $4, as long as shares continue to catch a bid above $3.70.

Yahoo!

Nearest Resistance: $40
Nearest Support: $37
Catalyst: Technical Setup

Technology giant Yahoo! (YHOO) moved 2.5% higher yesterday after breaking through a key technical level at $37, a move that clears the way to continued upside up to its next meaningful resistance level at $40. Yahoo! is another name that sees high trading volumes on a perennial basis, but its tech exposure and six-month consolidation made it an ideal candidate for a larger move than the big indices on Monday.

As promising as YHOO's breakout looks here, the real excitement for shareholders comes on a test of a much more critical resistance level at $42. If YHOO can break above that level, then there's considerable room to run higher from there.

Look at yesterday's breakout as an opportunity to scale into a position in this tech name. The 50-day moving average is a logical place to keep a protective stop here.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

 

 

 

Follow Stockpickr on Twitter and become a fan on Facebook.

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

More from Investing

Stocks Could Easily Crater Into Memorial Day Weekend

Stocks Could Easily Crater Into Memorial Day Weekend

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

NetApp CEO Sees Room to Profit From the Cloud

NetApp CEO Sees Room to Profit From the Cloud

3 Red-Hot Chip Stocks Trading at Bargain Prices

3 Red-Hot Chip Stocks Trading at Bargain Prices

Tempted by General Electric's Fat Dividend Yield? Grab Yourself a Burger Instead

Tempted by General Electric's Fat Dividend Yield? Grab Yourself a Burger Instead