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.
So, today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market.
Bank of America
- Nearest Resistance: $18
- Nearest Support: $16.50
- Catalyst: Technical setup
Leading things off on Monday is $173 billion banking giant Bank of America (BAC) . BofA is up 2.8% as of this writing, rallying hard thanks to the combination of a bullish technical setup and broad market strength as the S&P 500 breaks free of its longest-lasting losing streak in 36 years. Bank of America has been in a well-defined uptrend since shares bottomed back at the end of the summer, and today's big up-move comes as this stock tests trendline support for the fifth time in the intervening months. From here, Bank of America is testing October's highs at $17. If cleared, the next potential pausing point on the way up comes in at BofA's 52-week highs around $18.