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.
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Nearest Resistance: N/A
Nearest Support: $36
Catalyst: Q3 Earnings
Hewlett-Packard (HPQ) added onto the progress it's made in the first half of the year, rallying more than 5.35% yesterday following the firm's third-quarter earnings numbers. Excluding one-time items, H-P earned 89 cents per share for the quarter, and grew revenues for the first time in close to three years, signaling that the arduous process of turning the ship around may be showing some results.
H-P has been a "buy the dips" stock all year long, bouncing its way higher off of the 50-day moving average like clockwork this year. Yesterday's big bounce higher may be a larger run than any of its previous single-day rallies, but the breakout above prior resistance at $36 makes now a great opportunity to latch onto the buying. If you decide to jump in here, I'd recommend keeping a protective stop on the other side of the 50-day moving average.
Nearest Resistance: N/A
Nearest Support: $33
Catalyst: Technical Setup
Intel (INTC) is another tech name that's rallying hard on big volume this week. Shares added another 1.88% onto their performance on Thursday thanks to a bullish technical setup in shares. Intel has been going straight up since February, transitioning from an uptrend to a parabolic move higher in the second quarter of the year. Today's breakout to new highs is sending an important momentum signal to buyers.
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.
Nearest Resistance: $57.50
Nearest Support: $45
Catalyst: Q2 Earnings
Chinese online marketplace 58.com (WUBA) sold off by 7.6% on big volume yesterday, swatted down following the firm's second quarter earnings numbers. While revenues came in above expectations at $64.6 million, forecasts for the third quarter were lower than Wall Street was hoping for. Next quarter, the firm expects to earn between $66 million and $68 million, while analysts were forecasting sales to hit $74.7 million three months from now.
Technically speaking, WUBA is down, but it's not out yet. The stock drop yesterday didn't violate WUBA's long-term support line, and shares continue to bounce their way higher in an ascending triangle pattern. If shares can catch a bid above resistance at $57.50, this speculative name is a buy.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.