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: $20.50
Nearest Support: $19.25
Catalyst: Freeport Energy IPO
Mining firm Freeport-McMoRan (FCX) managed a 2.2% pop on Wednesday, buoyed by news that this diversified materials stock was planning an initial public offering of its Freeport Energy subsidiary. By peeling the oil and gas unit off of its balance sheet, Freeport should unlock some trapped value from its balance sheet, even if it's not selling at a particularly opportunistic time.
From a technical standpoint, Freeport is testing near-term resistance this week at $20.50. Shares have been consolidating after selling off since the start of May, and a breakout back above $20.50 would clear the way to a retest of prior highs up near $24.
If Freeport-McMoRan can catch a bid above that level tomorrow, it should provide a good near-term buying opportunity.
Host Hotels & Resorts
Nearest Resistance: $21.50
Nearest Support: $20.60
Catalyst: Technical Setup
After selling off more than 12.8% since the beginning of 2015, this could mark the start of a bottom for Host. We'll want to see some continuation in today's session before the breakout is confirmed. If it is, then nearby resistance at $21.50 becomes the next potential stumbling block for this $15 billion hotel REIT.
Bank of America
Nearest Resistance: $17.70
Nearest Support: $17.20
Catalyst: Technical Setup
Last up on our list of active stocks is perennially-high-volume stock Bank of America (BAC). BofA has been in rally mode for the last couple of months, climbing more than 13% since the start of April. More recently, shares have been consolidating sideways, bleeding off some overbought momentum.
A breakout above $17.70 resistance would provide a buyable move for BofA -- and shares are flirting with those levels in today's session. Keep a close eye on Bank of America this week. After a sideways move, this big stock could be about to kick off its next leg higher.