MU DD DHR PLL SUNE
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: $70.50
Nearest Support: $64
Catalyst: Activist Defeat
Chemical maker DuPont (DD) is down more than 6.5% following a shareholder vote that defeated a bid from activist investor Trian Fund Management to win a board seat. Trian's goal has been to break apart DuPont in an effort to cut approximately $4 billion in costs from the firm. Today's vote results mean that the rest of DuPont's investors don't agree with that strategy.
From a technical standpoint, DuPont has been looking toxic for a little while now, but today's big drop could be the trigger for a swift downside move. Shares are testing a breakdown below key support at $70.50 in today's session.
Nearest Resistance: $88
Nearest Support: $82
Catalyst: Pall Acquisition
Industrial conglomerate Danaher (DHR) is up 2% on big volume this afternoon, following news that the firm was buying filtration and purification stock Pall (PLL) in a deal worth $13.8 billion. The deal is Danaher's biggest, and it will split DHR into two separate publicly traded firms. DHR is splitting apart in a move to unlock more value for shareholders.
Technically, shares are very close to breaking out above resistance at $88. While shares started Wednesday's trading session above that high water mark, they didn't stay at those highs. Look for a close above $88 resistance as a signal that DHR is heading higher this summer.
Nearest Resistance: $29
Nearest Support: $26
Catalyst: Technical Setup
$7.6 billion solar firm SunEdison (SUNE) may be one of Wall Street's most-hated large stocks, but the price action has been pretty hard to argue with lately. Shares are catching a big-volume move this afternoon, spurred higher by a test of multi-year highs up at $29.
The uptrend in SUNE has been very orderly all year long, and that's unlikely to change here. Buy the dips in SunEdison.
Nearest Resistance: $29.50
Nearest Support: $25
Catalyst: Market Growth
Flash memory maker Micron Technology (MU) is getting a small jolt this afternoon, after a report from Inotera Memories reported that it expects growth in demand for DRAM products to increase in the third quarter of 2015. Micron owns a large equity stake in Inotera, as well as access to the firm's manufacturing capacity.
Still, Micron hasn't been looking so hot lately. While today's bounce comes on a test of an important support level at $27, the downtrend is still very much intact in MU right now, and lower ground looks likely. Buyers should wait for shares to show that they can catch a bid above the upper trend line before jumping into this trade.