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.
Direxion Daily Gold Miners Bear 3x ETF
- Nearest Resistance: $2.25
- Nearest Support: $1
- Catalyst: Spot Gold Correction
Leading off the list of most actively traded stocks this afternoon is the Direxion Daily Gold Miners Bear 3x ETF (DUST - Get Report) . This popular exchange-traded fund provides leveraged inverse exposure to gold miners -- and as gold prices correct, this fund is rallying 13% this afternoon, making it one of the most heavily-traded issues on the NYSE.
Long-term, however, the recent correction in gold looks like a blip on the radar. Both the primary downtrend and more recent parabolic downtrend in DUST are intact right now, and today's move higher looks more like a relief rally within a down-move than any sort of change in trend.
As a leveraged ETF, DUST isn't the sort of fund you'd want to hold long-term. And that's been pretty evident from the price chart in 2016.
- Nearest Resistance: $1,250
- Nearest Support: $1,100
- Catalyst: Q1 Earnings
Wednesday is shaping up to be a rough session for shares of $60 billion online travel company Priceline Group (PCLN) . Priceline's shares are down nearly 10% as I write this afternoon, selling off following the firm's first-quarter earnings results. Priceline actually beat estimates for the quarter, generating profits of $10.54 per share, versus the $9.66 in earnings that analysts were expecting. That said, the firm's forecasts for the second quarter missed the mark, and that's what's driving the selling in Priceline this afternoon.
Technically speaking, Priceline's selling today is pretty significant. Shares are violating support at $1,250 today, a breakdown that's triggering the double top pattern that's been forming in shares of Priceline since the end of February. From here, support at $1,100 looks like the next potential pocket of buying pressure for shares on the way down.
- Nearest Resistance: $43
- Nearest Support: $38
- Catalyst: Analyst Downgrade
Athletic apparel stock Under Armour (UA - Get Report) is continuing a multi-day selloff this afternoon, shedding another 6.3% on big volume following news of two management departures as well as a downgrade from Brean Capital. Under Armour is losing its chief merchandising officer and chief digital officer, part of the reason behind Brean's decision cut Under Armour to a hold.
Technically speaking, today's session appears to be the final straw in this stock's price trend. Shares are violating the lower-end of its uptrend this afternoon, ending a trend that had been in place for nearly all of 2016. From here, Under Armour could slide further this month before it catches a meaningful support level.
ServiceMaster Global Holdings
- Nearest Resistance: $39
- Nearest Support: $35
- Catalyst: Q1 Earnings
Mid-cap residential and commercial services provider ServiceMaster Global Holdings (SERV) is selling off nearly 10% this afternoon, down following the firm's first-quarter earnings call. The firm earned a profit of 34 cents per share for the quarter, slightly coming in below analysts' 39-cent average best guess. Likewise, full-year guidance came on the lower-end of what Wall Street was expecting.
ServiceMaster's big drop today means that the firm is testing a big support level at $35 this afternoon. As I write, shares are holding just below that price level, but not enough to count as a "violation" at this point. If SERV materially busts $35, then it opens up a lot more downside risk as we head into the summer.
Sirius XM Holdings
- Nearest Resistance: $4
- Nearest Support: $3.85
- Catalyst: Technical Setup
Sirius XM Holdings (SIRI - Get Report) is seeing a high-volume trading session this afternoon, drawing big volume thanks to a big technical setup that's been forming in shares for the last month and a half.
Sirius has been forming an ascending triangle pattern, a bullish continuation setup that's formed by horizontal resistance up above shares at $4, and uptrending support to the downside. Put simply, a breakout above $4 would be an important buy signal in shares of Sirius XM this month-- and shares are within grabbing distance of that line in the sand right now. It makes sense to keep a close eye on Sirius XM this week.
- Nearest Resistance: $7.50
- Nearest Support: $6
- Catalyst: Reverse China Listing
Shares of Chinese real estate portal SouFun Holdings (SFUN - Get Report) are seeing big volume today, following the announcement that the firm is planning on moving its stock listing from the U.S. to China, in a move that could help the firm command a higher valuation than shares priced in dollars. The firm is planning an asset swap with Chongqing Wanli New Energy, the former using shares worth about $2.5 billion to buy SouFun's assets.
The news is triggering a push through $6 resistance for SouFun's shares, likely in anticipation that the firm will be able to join in on the nearly 4x multiple that China-listed stocks are commanding over U.S.-listed firms from an earnings standpoint.
- Nearest Resistance: $31
- Nearest Support: $22
- Catalyst: Q1 Earnings
Real estate site Zillow (Z - Get Report) is rallying nearly 15% this afternoon, up following the firm's first quarter earnings numbers release. Zillow lost 13 cents per share for the quarter, slightly missing the 9-cent loss target that analysts were expecting, but revenue and growth numbers were better than expected. Average monthly unique users were better than 156 million for the quarter, and the firm's second quarter outlook topped expectations as well.
Now Zillow is trading at the upper end of its price channel. That means, from a technical perspective, it makes sense to wait for shares to bleed off some momentum and settle back down to the lower end of the price channel before pulling the trigger on a buy here. If you decide to be a buyer, it makes sense to park a protective stop a bit below Zillow's 50-day moving average.