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: $41
Nearest Support: $40
Catalyst: Alibaba Pricing Deal
Shares of Internet giant Yahoo! (YHOO) are up more than 3.5% this afternoon, boosted following details of Alibaba's upcoming IPO that have investors excited about a public offering that could value the Chinese business as high as $162.7 billion. Yahoo owns 22% of Alibaba's stock, making the deal a critical component of YHOO's own share price. The IPO is expected to price on September 18, with shares trading the next day.
From a technical standpoint, YHOO looks strong right now. Shares broke their downtrend at the end of July, and this stock has been making higher prints ever since. Resistance at $41 is an important level that's being tested this afternoon. If YHOO can hold above $41, consider it buyable.
Nearest Resistance: $75
Nearest Support: $50
Catalyst: "Buy Button" Test
Microblogging service Twitter (TWTR) is seeing more than 3.3% to the upside this afternoon following an interview with exec Nathan Hubbard that confirmed investor speculation about a forthcoming "buy" button that will be added to the service's advertising toolbox. Twitter is partnering with payment company Stripe to save users' payment details, enabling convenient purchasing directly from tweets, a move that should help to accelerate revenue growth at Twitter. For now, the service remains in limited testing.
Twitter has looked technically robust since the beginning of June. Shares have been bouncing their way higher in an uptrend over that stretch, and new six-month highs in today's session look promising. TWTR is likely to see higher ground in the short-term.
Nearest Resistance: $40
Nearest Support: $38
Catalyst: Acquisition Rumors
Cloud computing host Rackspace Hosting (RAX) is up more than 5% this afternoon following rumors that the firm is a potential acquisition target for phone service provider CenturyLink (CTL) . While details of the deal are still scant, RAX is seeing a relatively modest upside move today because of the likelihood that talks will fall through.
Technically speaking, RAX looks solid following its breakout at the open this morning. While medium-term resistance at $38 got taken out today, we'll want to see buyers step in at the more significant $40 resistance level before it makes sense to buy this name longer-term.
Nearest Resistance: $48
Nearest Support: $48
Catalyst: Q4 Earnings
Last up is GoPro (GPRO) , another name that's up following an analyst upgrade today. The recent IPO was rated to "outperform" at FBN Securities, giving traders yet another reason to start buying shares again. Since going public, GPRO's trajectory has been nearly straight up with few pauses along the way -- and now new highs on the upgrade mean more of the same looks likely in September.
Making new highs is significant from an investor psychology standpoint because it means 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. For traders who aren't risk-averse, there's still time to build a position in GoPro now, just keep a tight protective 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.