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.
Nearest Resistance: $22.75¿
Nearest Support: $21¿
Catalyst: Pricing Reports
Things are looking "toppy" over at Taiwan Semiconductor (TSM - Get Report) . This big chip stock is off 2% on big volume this afternoon following reports that the firm's reluctance to lower prices on its 20-nanometer process is driving away key customers. The firm is expected to set its contract prices for the rest of the year by the middle of next month. Tomorrow's January sales release will provide the next big performance snapshot.
From a technical standpoint, TSM's chart doesn't look particularly good. Shares are rolling over, testing a breakdown through $22.75 support. If that's confirmed with today's close, then buyers are clearly in control of this stock. It'll take a big surprise in tomorrow's sales release to change that.
Nearest Resistance: $69¿
Nearest Support: $63¿
Catalyst: Antitrust Settlement
Meanwhile, Qualcomm (QCOM - Get Report) , one of the big customers that's potentially moving away from TSM's high-cost tech, is pushing higher on news of its own. Shares of QCOM are up 2.4% this afternoon, boosted by news that Qualcomm is nearing a resolution to its antitrust dispute with China. Fines are expected to come in around $1 billion.
QCOM sold off hard following earnings at the end of February, but shares are starting to bounce back this month. Resistance at $69 is the next line in the sand that needs to get crossed. Buyers should wait to see if Qualcomm can catch a bid above that $69 price level before buying.
Read Jim Cramer's take on Qualcomm here.
Nearest Resistance: $6.80¿
Nearest Support: $6.25¿
Catalyst: Technical Setup
Brazilian beverage giant Ambev (ABEV - Get Report) is making a technical move on big volume this afternoon. The stock isn't making a big price move on an absolute basis despite the high trading volume, but shares do look constructive here.
ABEV spend most of the last year in a downtrend, but it finally broke out in mid-January. After throwing back to test support on the top of that old trend channel, shares are moving up again. If you want to be a buyer in ABEV, I'd just recommend keeping a protective stop at the 50-day moving average.
Delta Air Lines
Nearest Resistance: $48¿
Nearest Support: $44¿
Catalyst: Crude Jump
Last on our list of Wall Street's most active stocks is Delta Air Lines (DAL - Get Report) . Delta is selling off 2.6% this afternoon, a move spurred by the jump in oil prices. While that's not an especially big drop for a stock that's rallied 40% in the last 12 months, it is significant because shares are testing a key support level at $44. Basically, if DAL fails to hold support at $44, then this stock suddenly becomes open to considerable downside risk.
If you've been holding Delta for a while now, the first violation of $44 is a good time to start thinking about taking gains off the table.
-- Written by Jonas Elmerraji in Baltimore.