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.
Nearest Resistance: $25
Nearest Support: $23
Catalyst: Mine Purchase
Gold prices may be up this afternoon, but $12 billion gold mining company Newmont Mining (NEM) isn't participating in the bump. Instead, this large-cap gold stock is down 1.7% on big volume this afternoon, following news that Newmont will raise $682 million in a share offering to use toward the purchase of a Colorado gold mine from AngloGold Ashanti (AU). The dilution represents about 7% of Newmont's outstanding shares.
More significantly, the announcement is pushing shares down enough to violate the uptrend that's been in play in Newmont since the calendar flipped to 2015. With the bottom of Newmont's uptrend broken, this stock could have more downside ahead. Investors looking for gold exposure should look to other miners this summer.