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: $13.75
Nearest Support: $13.25
Catalyst: Share Offering
Electric utility AES (AES) is seeing big volume this afternoon following news that the firm was undergoing a secondary offering. A unit of China Investment priced a 60 million share offering at $13.25 today, a third of which had been reserved for AES to purchase using existing buyback approvals.
Technically speaking, today's big-volume move doesn't change much about this chart. Shares are still bouncing their way higher in an uptrend that got initiated back in mid-February, giving investors an opportunity to buy on the next leg up. Buy the dips in AES.
Nearest Resistance: $58
Nearest Support: $56.50
Williams Partners (WPZ) is up more than 20% this afternoon, after news hit that general partner Williams Cos. (WMB) was buying the remaining 40% of the MLP that it didn't already own in an all-stock deal worth approximately $13.8 billion. WPZ investors will receive 1.115 shares of WMB for every unit they own, a deal worth approximately $58 at current price levels.
Put simply, the money has already been made on the WPZ deal at this point on the other hand, this week looks like a good opportunity to buy WMB as shares test new highs.
Nearest Resistance: $3.15
Nearest Support: $2.85
Catalyst: Technical Setup
Mobile and social media game maker Zynga (ZNGA) is seeing a 2.5% pop this afternoon on high volume, a move driven by the technicals today.
Zynga has spent the last six months churning sideways in a tight range between $2.20 support at $2.85, but shares are finally catching a bid above that channel today. The breakout in ZNGA clears the way for a test of prior resistance up at $3.15. While this tends to be a more volatile stock, now looks like a good time to be a buyer for traders who aren't too risk-averse.