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: $132.50
Nearest Support: $126
Catalyst: Technical Setup
Up first on our list of high-volume stocks is Apple (AAPL). Apple is a perennially high-volume stock, but it's making an appearance on our list thanks to a bullish technical setup that's been forming in shares for the last couple of months. Apple has been forming an ascending triangle since March, bumping up against resistance up at $132.50. Friday's test of support at $126 was a big level -- and it helped to fuel the "melt-up" that took place over the course of Friday's session. By the time the closing bell range, AAPL was up more than 3%.
Long-term, Apple continues to look attractive on the dips, but a breakout above $132.50 is a much better breakout buy signal to follow into this stock.
Nearest Resistance: $210
Nearest Support: $190
Catalyst: Q1 Earnings
There's no two ways about it: Last week was brutal for shares of LinkedIn (LNKD). The social network shed 18.6% on Friday, slammed lower following its first-quarter earnings call. Excluding one-time charges, LNKD earned a profit of 57 cents for the first quarter, a solid number that was almost exactly in line with analysts' expectations. But forecasts for the second quarter were ugly, and the firm cut its guidance for the full year as a result. That's the real reason behind LNKD's selloff.
Technically speaking, LinkedIn's chart looks pretty ugly here. Shares had been in a pretty textbook uptrend going back to October, bouncing off of trend line support on every successive test. But today's big violation of that uptrend means that the rally is over now. Shares could retreat down to $190 support without passing through any technically-important price levels.
Nearest Resistance: $15.50
Nearest Support: $13.75
Catalyst: Analyst Upgrade
Alcoa (AA) got a shot in the arm to end last week, jumping more than 5% on Friday thanks to an analyst upgrade. Alcoa hosted its annual shareholder meeting Friday, but the real upside driver came from the buoyant market conditions in Friday's session, paired with the upgrade from Standpoint Research.
Alcoa's trading on Friday was significant. Shares broke out above prior resistance at $13.75, taking out a level that had been acting like a price ceiling for more than a month. With that level behind it, AA looks pretty "bottomy" here. Look for shares to rebound near-term after getting oversold in March.