How to Trade the Market's Most Active Stocks

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.

Alibaba


Nearest Resistance: $90
Nearest Support: $72
Catalyst: New CEO

Chinese e-commerce giant Alibaba  (BABA) is seeing a second-straight day of buying following the announcement that the firm was getting a new CEO. Daniel Zhang takes over the chief executive role at Alibaba on May 10, a move that investors are hoping can fix the downward trajectory in this stock. The pent-up buying power we saw get released this week is evidence that investors like the new direction from management.

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