So the election is over and Donald Trump is the president-elect. Time to put down the 10-K filings and the stock screeners and 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: Trump Win
Bank of America (BAC) is topping the list of the market's most-active stocks once again today, boosted more than 4% on huge volume this afternoon thanks to speculation that Donald Trump's presidential win could come with looser regulations on banks and more pressure on Janet Yellen and the Federal Reserve to increase interest rates at a faster pace. Bank of America is leading the rest of the financial sector higher this afternoon.
The outperformance from Bank of America isn't totally surprising given this stock's technical trajectory coming into today's financial sector rally. BofA has been in a well-defined uptrend since July, and shares are testing new 52-week highs at $18 this afternoon. From a relative strength standpoint, Bank of America continues to look like a stock that investors should want to own in the months ahead.