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: $7.50
Nearest Support: $6
Catalyst: Analyst Upgrade, Spectrum Auction
Shares of mobile carrier Sprint (S) rallied hard on Friday afternoon, up more than 5.78% following news that the firm was upgraded by analysts at Cowen thanks to a new "iPhone for Life" marketing plan for the new iPhone lineup that costs $70 a month and includes upgrades to the latest model of the device every two years. Additional upside is coming from cost savings news that Sprint will be the only major carrier that will not need to participate in the FCC's November spectrum auction.
Technically speaking, Sprint is in breakout mode this week, rallying as it fills the price gap left when shares broke down at the start of August. Look for a potential stumbling block up at $7.50 resistance, and downside support at $6.
Ulta Salon, Cosmetics & Fragrance
Nearest Resistance: $130
Nearest Support: $100
Catalyst: Q2 Earnings
Shares of beauty supply operator Ulta Salon, Cosmetics & Fragrance (ULTA) moved up approximately 20% in Friday's session, boosted by positive second quarter earnings numbers. Ulta reported profits for 94 cents per share for the quarter, beating out analysts' best guess profits of 83 cents per share. Even better, the firm expects third quarter revenues on the high end of Wall Street's expectations for both revenue and profits.
The technicals look good in ULTA right now. This stock's big gap higher on Friday broke shares above key round-number resistance at $100, clearing the way for a retest of last year's highs up near $130. For traders who aren't risk-averse, ULTA is buyable here.
Nearest Resistance: $19
Nearest Support: $16
Catalyst: Brazilian Elections
Brazilian national oil company Petrobras (PBR) sold off alongside a broader Brazilian stock indices on Friday, closing down 6.8% on poll results that showed the country's election too close to call. The Ibope poll shows runoff results with 1% of one another for Dilma Rousseff and Marina Silva, stoking concerns that anti-business policies could extend for another term.
The ongoing election drama has been a major catalyst for Brazilian stocks in 2014, but looking at PBR from a longer-term technical basis, the uptrend is still intact in spite of Friday's lower close. As long as support at $16 stays intact, it makes sense to buy the dips in PBR.
Nearest Resistance: $35
Nearest Support: $34.75
Catalyst: ADS Acquisition
Shares of small-cap digital marketing services firm Conversant (CNVR) popped more than 30% at the open on Friday, boosted news that Alliance Data Systems (ADS) had agreed to buy the firm for $2.3 billion – a deal worth $35 a share in cash and stock. If you missed the move on CNVR, it's best to move on at this point; there may be a lot of attention on Conversant now, but the money has already been made.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.