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 what 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 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 for investors who want a starting point in their analysis.
So, 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: N/A
- Nearest Support: $17.75
- Catalyst: Technical Setup
First on our list of Monday's most actively traded stocks is Bank of America (BAC) . BofA has consistently topped the NYSE's list of highest-volume stocks this past week, but today's price action in the $203 billion bank is anything but routine. Bank of America is rallying more than 5% this afternoon, boosted by the combination of a technical setup and the prospect that a Trump administration could put pressure on the Fed to raise rates, boosting net interest margin (and profitability) for big banks.
Technically speaking, BofA is clearly in breakout territory this afternoon, pushing through to new multi-year highs. Today's high-volume big-dollar move is a good indication that this stock's momentum isn't close to fizzling out here.