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: $44
- Nearest Support: $37
- Catalyst: Technical Setup
Energy pipeline company Kinder Morgan (KMI) is down 2% on big volume this afternoon, swatted lower by the combination of a bearish technical setup and a negative Barron's story.
The real driver here is technical, though. Shares violated a key support level back at the end of May, shaking out buyers and opening up a considerable amount of downside risk in Kinder Morgan.
Don't get tempted by the big dividend payout here. Until Kinder Morgan can manage to catch a bid again, this stock is best avoided.