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 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.
- Nearest Resistance: $6
- Nearest Support: $3.50
- Catalyst: Offering
First on our list of the stock market's most actively traded issues is oilfield services stock Weatherford International (WFT) . Weatherford is up 1.75% on large volume, following the pricing of its 84.5 million share offering at $5.40.
Generally, dilutive offerings drive equity prices lower, but the strong pricing on the shares and the financial improvements from the proceeds are helping to bolster this stock today. Weatherford plans on using the cash for general corporate purposes, including debt payment.
In the long term, the technical trajectory in Weatherford doesn't look appealing. Shares have been in a well-defined downtrend for all of 2016, dragging lower over the course of the year. While the recent upswing in Weatherford looks auspicious, it's really just a counter-trend correction when taken in the context of the longer-term direction that shares are stuck in.