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: $7.40
Nearest Support: $6.40
Catalyst: Uber Maps Bid
Nokia (NOK) is catching a bid today, boosted by reports that ridesharing service Uber was making a bid for Nokia's maps business, Here, for as much as $3 billion. The Uber bid comes at a time when Nokia is already considering selling Here to a group of German automakers in an attempt to free up cash for its core business. Shares of NOK are up 2.4% this afternoon on big volume as a result of the move.
Nokia's price action looks stronger than it did a week ago, but shares still face pretty stiff resistance up around $7.40. Until NOK can regain that $7.40 price ceiling, it's probably best to sit on the sidelines with this stock.
Nearest Resistance: $23
Nearest Support: $20.75
Catalyst: Q1 Earnings
Shares of chipmaker Nvidia (NVDA) are taking a hit this afternoon, swatted 6% lower on big volume after the firm posted its first-quarter earnings numbers. For the quarter, Nvidia earned profits of 33 cents per share, coming in-line with what analysts were expecting. But revenue forecasts for the second quarter were soft, and that's what's driving today's dip in shares.
The good news is that, technically speaking, this stock may be down but it's not out -- at least not yet. NVDA is forming a double top pattern, but it doesn't trigger a downside move unless support at $20.75 gets violated. Until then, shares are holding up near the upper end of their recent range.
Nearest Resistance: $52.50
Nearest Support: $39
Catalyst: Company Sale
Yelp (YELP) is extending into a second day of gains this afternoon, following the announcement that the firm had hired Goldman Sachs to explore a potential sale of the company. With shares down more than 50% since their peak last year, the possibility of unlocking some shareholder value is proving to be enough to get investors excited.
The thing is, YELP has been in a parabolic downtrend for the better part of the last year, and despite a recent pop in shares, that downtrend is still very much intact right now. Don't get lured into being a yelp buyer until shares can break out above the top of that price pattern.
Nearest Resistance: $49
Nearest Support: $44
Catalyst: Salesforce Buyout Speculation
Some pretty expensive "What-ifs" are getting investors excited in Microsoft (MSFT) this week. After rumors hit that Microsoft is considering making a bid for Salesforce.com (CRM), investors are bidding shares up more than 2% at the thought of adding Salesforce's expertise to Microsoft's own existing customer relationship management solutions.
MSFT has been bouncing for the last two days, after a correction swatted shares lower from prior highs at $49. Still, overall, the technical picture looks decidedly bullish in MSFT right now, and shares are likely to make another attempt at that $49 high water mark in the near-term. A breakout above those prior highs is a good signal that it's time to jump in.