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.
Michael Kors Holdings
Nearest Resistance: $59
Nearest Support: $45
Catalyst: Q4 Earnings
No two ways about it, this week has been a rough one for shares of accessory maker Michael Kors Holdings (KORS). Shares of the $12 billion handbag stock dropped more than 24% in yesterday's session following the firm's fourth-quarter earnings numbers. The big driver for the huge drop came from a bad sales forecast for the year ahead. While the firm estimates profits to end up between $4.40 and $4.50, analysts were expecting closer to $4.72 on average.
Technically speaking, KORS hasn't been particularly attractive for the past year. Shares have been slumping lower in a textbook downtrend in the long-term, but this week's big drop means that the chart is downright broken. From here, KORS is best avoided until this stock can find some semblance of support again.