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 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 launching 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.
Advanced Micro Devices
- Nearest Resistance: N/A
- Nearest Support: $7.50
- Catalyst: Technical Setup
Shares of Advanced Micro Devices (AMD) are kicking off another week with a big-volume move. AMD is up nearly 3.7% as of this writing, boosted by the combination of yet another industry acquisition and a bullish technical setup. AMD broke out of a textbook example of an ascending triangle setup last week, pushing to new 52-week highs in a move that also clears the way for more upside in the final stretch of 2016. If you decide to buy shares of AMD here, it makes sense to park a protective stop on the other side of newfound support at $7.50.