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.
Hilton Worldwide Holdings
Nearest Resistance: $32
Nearest Support: $29
Catalyst: Blackstone Selling
Hotelier Hilton Worldwide Holdings (HLT) is catching a big volume move this afternoon, trading actively after news hit that former parent Blackstone Group (BX) is selling 90 million shares of the firm in a secondary offering. For Blackstone, the share offering represents an exit opportunity for a big chunk of the firm's 544 million shares of HLT. For investors, this might be a pretty solid buying opportunity.
Hilton has been in an uptrend since last fall, bouncing its way higher on every successive test of the bottom of its price channel. With shares of HLT coming off of trend line support for a fifth time in 2015, now looks like a reasonably good time to be a buyer again.
Nearest Resistance: $25
Nearest Support: $17
Catalyst: Acquisition News
$1.8 billion energy company Rosetta Resources (ROSE) is enjoying a high-volume move this afternoon, up more than 25% after news hit that the firm was being acquired by Noble Energy (NBL) in a stock deal valued at $24.63 per share. While the deal prices ROSE on the low end of its recent range, it's a pretty substantial price premium, and the money has basically already been made on this trade. The merger premium left in shares at this point is immaterial.
Nearest Resistance: $52.50
Nearest Support: $45.60
Catalyst: ROSE Acquisition
The other side of the Rosetta Resources trade is Noble Energy (NBL), the $19 billion energy exploration and production firm that's buying the smaller E&P stock. While shares are selling off about 7% on big volume this afternoon, the deal is probably pretty well valued considering NBL is paying in stock, which has seen its down major devaluation at the hands of falling energy prices in recent months.
Even better, NBL looks like it's forming a bottom of its own now. Shares have resistance up at $52.50, and uptrending support to the downside, forming an ascending triangle setup. A move above $52.50 is an important buy signal in this beaten-down energy stock.