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.
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Nearest Resistance: $103
Nearest Support: $96.50
Catalyst: Product Launch Event
Apple (AAPL) is seeing plenty of attention this afternoon, up more than 2.5% in today's session following the firm's product launch event yesterday. On Tuesday, Apple announced two new larger iPhone models, its Apple Pay payment system, and the much-awaited Apple Watch. The prospect of material revenue growth spurred by the new products is the reason for today's pop.
Upside isn't particularly surprising today – Apple's uptrending channel looked ready for a bounce higher as recently as last week. If you decide to buy the bounce, I'd recommend keeping a protective stop on the other side of the 50-day moving average.
GT Advanced Technologies
Nearest Resistance: $13
Nearest Support: $9
Catalyst: Analyst Downgrades
Shares of GT Advanced Technologies (GTAT) are down more than 14% this afternoon, following dashed hopes that the firm's sapphire glass would be featured in iPhone 6 or iPhone 6 Plus. GTAT's price targets were cut by analysts at Goldman Sachs, Cowen, Canaccord Genuity, Dougherty and Piper Jaffray on the news.
Today's move isn't just painful -- it's also technically significant. Until now, shares have managed to hold onto support at $13, a key level that's acted as a floor for shares since March. Today's breakdown through that $13 level is a major sell signal in GTAT.
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Nearest Resistance: $25.50
Nearest Support: N/A
Catalyst: Fraud Allegations
Shares of Chinese datacenter company 21Vianet Group (VNET) are getting hammered today, after short sellers Trinity Research published a 121-page report claiming fraud at the firm. While VNET released a statement that the allegations are false and error-riddled, it's likely to take quite some time for the dust to settle in this fight. In the meantime, it doesn't matter – the damage has already been done.
Technically speaking, VNET started the session yesterday looking bullish, but ended up falling below key support at $25.50. That violation of a bullish setup is just as bad as an outright bearish one right now. There's a lot of downside risk in shares at this point.
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Palo Alto Networks
Nearest Resistance: N/A
Nearest Support: $87
Catalyst: Q4 Earnings
Meanwhile, network security firm Palo Alto Networks (PANW) is up more than 11% this afternoon, following the firm's fourth quarter earnings release after the bell yesterday. PANW earned 11 cents for the quarter, a number that came in-line with analysts' expectations. More importantly, it announced profit forecasts of 12 cents for next quarter, and better than expected revenues for both periods. That's enough to propel this momentum name to new highs today.
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 PANW now, just keep a tight protective stop in place at the 50-day moving average.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.