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: $61¿
Nearest Support: $59¿
Catalyst: Takeover Offer
$45 billion energy infrastructure firm Williams Cos. (WMB) is up more than 25% on huge volume this afternoon, boosted by a $48 billion stock-based takeover bid from Energy Transfer Equity (ETE). While Williams rejected the offer, which then valued Williams at $64 per share, the bid does put added scrutiny on Williams' valuation at the same time the firm moves on to explore strategic alternatives to selling itself to Energy Transfer Equity.
The acquisition offer is spurring a huge gap higher this afternoon, putting Williams Cos. at new highs. While there's a lot of event risk baked into Williams securing a better bid, there's still likely some meat left on the bone in this trade.
National Bank of Greece
Nearest Resistance: $1.30¿
Nearest Support: $1¿
Catalyst: Deal Progress
Final-hour talks to resolve Greece's debt issues in Brussels are helping to drive a big 16% pop in National Bank of Greece (NBG) this afternoon, shoving the embattled bank back to the top of its recent price range.
That's hardly an endorsement, however. National Bank of Greece is still forming a bearish descending triangle in the long-term, and until shares can break free of that price setup, sellers have control. The only way this resolves to the upside this week is with a resolution of the country's debt issues with creditors.
Bank of America
Nearest Resistance: $17.25¿
Nearest Support: $18¿
Catalyst: Technical Setup
U.S. banking giant Bank of America (BAC) is catching a bid this afternoon, up more than 1.7% as I write thanks to a technical rebound. BofA had been correcting for the last week and a half, but in the context of this stock's move higher from April's lows, things actually look pretty solid.
In technical parlance, Bank of America is forming a flag, a short-term correction that gives buyers a chance to catch their breath before kicking off a second leg higher. A move above $17.50 is a solid near-term buy signal in Bank of America; it clears the way for a re-test of prior highs at $18.
Nearest Resistance: $38.60¿
Nearest Support: $34¿
Fitbit (FIT) is off to a springboard start just three days after going public last week. Shares of the health and fitness technology stock are up more than 17% this afternoon, plowing to new highs as swarms of investors try to grab a piece of a growth stock with limited share availability.
Momentum clearly looks positive here in Fitbit, but investors who are anxious about volatility should stay away. This stock has been pushing higher every day so far, but when that ends, it's going to end with a bang.
Here's what Jim Cramer had to say about Fitbit recently.