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: N/A
- Nearest Support: $17.75
- Catalyst: Technical Setup
First on our list of high-volume setups this morning is $210 billion banking behemoth Bank of America (BAC) . BofA is consistently one of the most heavily-traded stocks on the New York Stock Exchange, and today's proving to be no exception as this big stock starts the week off in correction mode.
Bank of America has spent most of November in a breakneck rally, up almost 25% since the start of the month. That makes today's 1.2% retracement look a lot less concerning here, particularly given the fact that BofA made new 52-week highs during Friday's shortened trading session. BofA is still in "breakout mode" this week.