How to Trade 4 Big Stocks Making Big Headlines

 

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.

Janus Capital Group



Nearest Resistance: $15.65
Nearest Support: $12.75
Catalyst: Bill Gross Hire

First up is investment management firm Janus Capital Group (JNS) , a name that's up more than 30% as I write this afternoon, following news that the small-cap firm had hired bond guru Bill Gross away from Pimco. The news was enough to make small-cap name Janus the most heavily traded NYSE stock today, adding more than $650 million to Janus' market capitalization in the process.

From a technical standpoint, the breakout in shares of JNS is huge. It's blasting shares above the $12.75 high water mark this stock made back in July. New highs in Janus are bullish, even if the market's reaction to Gross' move is overblown. But risk-averse investors should still stay away from this stock.

BlackBerry


Nearest Resistance: $11
Nearest Support: $9
Catalyst: Q2 2015 Earnings

BlackBerry (BBRY) is up more than 4% this afternoon, boosted by the firm's second--quarter earnings call for fiscal 2015. BlackBerry lost 2 cents per share for the quarter, a number that was less bad than analysts had feared. Wall Street's consensus best guess was a 16-cent loss for the second quarter.

Technically speaking, BBRY looks bullish in the longer-term. Shares have been forming an inverse head and shoulders setup for all of 2014, and a big buy signal comes on a push through this stock's neckline at $11. I'd recommend waiting for that confirmation of buying pressure before jumping into shares.

Micron Technology


Nearest Resistance: $35
Nearest Support: $30
Catalyst: Q4 Earnings

Flash memory maker Micron Technology (MU) is seeing big volume -- and a big 5.7% price pop -- following the firm's fourth-quarter earnings release yesterday. Micron earned profits of 82 cents per share for the quarter, just edging out analysts' 81-cent estimate. More importantly, Micron's outlook for increased demand for memory chips is helping to propel buyers this afternoon.

Micron's big pop today isn't a huge surprise. Shares have been forming a very tradable uptrending channel for the last year and change, and MU was testing a big glut of buying pressure at $30 earlier in the week. If you're looking for a time to build a position in MU, now looks like a good high-probability entry point.

Nike


Nearest Resistance: N/A
Nearest Support: $82
Catalyst: Q1 2015 Earnings

Nike (NKE) is in breakout mode this afternoon, rallying following the firm's first-quarter earnings for fiscal 2015. Shares are up more than 10% in today's session, following earnings of $1.09 for the quarter, a number that widely beat analysts' expectations of 88 cents. Nike also reported future orders that were higher than Wall Street expected, with significant growth in North America and Europe.

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 Nike 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.

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At the time of publication, author had no positions in the names mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji

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