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: $54
Nearest Support: $48
Catalyst: Apple Competition
Online auction giant eBay (EBAY) is down almost 3% this afternoon following the announcement of Apple Pay yesterday. The service stands to become big competition for eBay unit PayPal, which was rumored to be spun off in an IPO as early as next year. With a big installed base and a convenient new offering, Apple's payment service poses a big threat to PayPal if Apple chooses to move beyond facilitating the transaction and into running the actual payment networks themselves.
Then again, eBay's chart has been broken for a while now. Shares broke trend line support earlier in the month, putting a downside target at $48. I'd avoid being on the long-side of EBAY until shares can start posting higher lows again.
Nearest Resistance: $1.60
Nearest Support: $0.70
Catalyst: Wedbush Comments
Troubled electronics retailer RadioShack (RSH) is down 10.5% this afternoon following comments from Wedbush Securities that the firm was a "sinking ship", reiterating an "underperform" rating on shares. Today's leg lower comes as the latest in a series of downward sessions ever since shares failed to hold support up at $1.60 -- now that level is resistance.
I'd avoid being a buyer in this volatile name until it finds some semblance of support, like at 70 cents. If you're risk-averse, don't try to trade RSH.
Nearest Resistance: $80
Nearest Support: $78
Catalyst: Hostile Takeover Bid
Family Dollar Stores (FDO) is seeing big volume today, following news that Dollar General (DG) was cutting management's decision out of its acquisition offer for FDO and was instead making a hostile bid directly to FDO shareholders. Dollar General is offering $80 for every share of FDO.
At this pont, the event risk is high in this stock. While there are a couple of merger arbitrage points to be made at current levels, FDO is a name that's best avoided for most investors.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.