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: $95
- Nearest Support: $88
- Catalyst: Share Exchange
Shares of $10 billion Chinese hotel site Ctrip.com International (CTRP - Get Report) are seeing a huge 20% spike on big volume this afternoon, boosted following news that the firm was initiating a share exchange with travel platform Qunar (QUNR) that would give the companies the dominant share of the Chinese hotel and air ticket markets. Investors clearly like the idea of a partnership between Qunar and Ctrip; shares of both firms are up big following the announcement.
Shares of Ctrip broke out of their downtrend late last week, and today's big gap up to new highs bodes well for anyone who owns this stock right now. While there's still some headline risk baked into this agreement, investors who aren't risk-averse might want to consider taking a starter position in Ctrip here.
- Nearest Resistance: $50
- Nearest Support: $42
- Catalyst: Ctrip Deal
The other side of the Ctrip deal is Qunar. Shares of this $5 billion travel platform are up more than 12% on the share swap announcement. The partnership effectively amounts to an acquisition of Qunar by Ctrip, which will now count Baidu (BIDU - Get Report) as a major shareholder thanks to its ownership position in Qunar.
While Qunar is up this afternoon, shares have been fading over the course of today's session, dipping back down towards the top of their range on Friday. Of the pair, Ctrip is the stronger stock for traders to play.
- Nearest Resistance: $16
- Nearest Support: $14.50
- Catalyst: Pre-Earnings Selling
Big automaker Ford Motor (F - Get Report) is seeing a small correction this afternoon, down a few cents per share on big volume ahead of earnings. Ford has seen a challenging year in 2015. Shares have been in a downtrend for most of the year, bouncing their way lower in a well-defined range. But this stock broke through the top of that downtrend when the calendar flipped to October, clearing the way for a retest of this year's highs in the final stretch of 2015.
Look for earnings to inject some volatility tomorrow. Provided this stock doesn't bitterly disappoint investors, we're likely to be left with a pretty good opportunity to be a buyer in Ford.
- Nearest Resistance: $33
- Nearest Support: $28
- Catalyst: Share Sale
Energy infrastructure company Kinder Morgan (KMI - Get Report) is down 4% on big volume this afternoon following the announcement that the firm will be selling 32 million depositary shares in a capital raise to pay down debt. That news is shoving shares of Kinder Morgan down to multi-week lows at the top of this stock's prior downtrend.
While shares broke through the top-side of that downtrend back at the beginning of October, they've been throwing back to re-test prior resistance in the last few sessions. Investors should be on the lookout for a bounce here. If Kinder Morgan re-enters its former downtrend, lower ground is likely to come ahead.