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.

MannKind


  • Nearest Resistance: $2.75
  • Nearest Support: N/A
  • Catalyst: Israeli Regulators

Small-cap biopharmaceutical stock MannKind  (MNKD - Get Report)  is off more than 14% this afternoon, swatted lower following reports that the Israel Securities Authority is blocking the company's planned offering of up to 50 million shares of its stock to Israeli-managed index funds, telling ETFs not to buy shares. As recently as yesterday, company management had said that they expect the Tel Aviv offering to proceed as planned.

From a technical standpoint, MannKind's chart looks pretty ugly right now. Shares accelerated their downtrend at the end of October, and they've been nearly halved since then. While MannKind might be good fodder for speculators, anyone looking for less of a lottery ticket trade should look elsewhere until this stock can find some semblance of support again.

 

Macy's


  • Nearest Resistance: $42.50
  • Nearest Support: N/A
  • Catalyst: Q3 Earnings

Department store retailer Macy's  (M - Get Report)  is getting hammered lower this afternoon, down more than 13% as I write, following third-quarter earnings numbers. Macy's actually beat analyst expectations for the quarter, generating a 56-cent profit that came in a couple of cents above analysts' best-guess numbers. But a guidance cut for full-year profits is driving the selloff Macy's this afternoon.

From a technical standpoint, this chart has been broken for a while now. Shares are violating the bottom of their downtrend today, sending a pretty clear negative indication to investors. Macy's could have more downside ahead this fall. Caveat emptor.

SunEdison


  • Nearest Resistance: $7.40
  • Nearest Support: N/A
  • Catalyst: Q3 Earnings

Solar company SunEdison  (SUNE)  is selling off this afternoon, shedding more than 15% during the session. SunEdison reported its third-quarter earnings numbers yesterday, announcing a loss of 92 cents per share -- significantly worse than the 65-cent loss than analysts had been expecting. Shares are continuing their selloff following yesterday's bigger decline.

For the last few months, SunEdison has been forming a pretty textbook descending triangle pattern, a bearish price setup that triggered with yesterday's big violation of support at $7.40. This stock has seen a pretty rough ride in recent months, but even more downside action looks very possible from here.

 

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.