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 and market data 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.
- Nearest Resistance: $130
- Nearest Support: $115
- Catalyst: Q1 Earnings
Shares of tech titan Apple (AAPL) are up 5.6% this afternoon, rallying hard following the firm's first quarter earnings numbers. Apple earned a record profit of $3.36 per share for the quarter, beating the $3.22 in earnings that Wall Street's best and brightest were expecting, on average. That earnings surprise came along with $78.4 billion in revenue for the quarter, and 78.3 million iPhones sold. That all-time high in quarterly profit is giving Apple a run towards adjusted all-time highs up at $134.54.
From a technical standpoint, Apple has been looking attractive since this past summer, bouncing its way higher in a well-defined uptrending channel. That uptrend in Apple is still alive and well this winter, as shares catapult toward the top of that price channel. In short, it makes sense to continue to buy the dips in this tech giant in 2017.
No one is happier with how Apple is doing than Jim Cramer, whose Action Alerts PLUS portfolio includes Apple. In a recent note, he and co-portfolio manager Jack Mohr "were very pleased with the record quarter, as the company again demonstrated its global dominance -- leveraging its premier brand and marketing reach to return the business to revenue growth following three consecutive quarters of declines and pushing iPhone average selling prices to $695."
- Nearest Resistance: $2.25
- Nearest Support: $1.60
- Catalyst: Restructuring Update
Seadrill (SDRL) is up 4.8% on big volume this afternoon, rebounding following a major selloff Tuesday. The driver behind both price moves has been an update on SDRL's restructuring, with shares plunging on concerns that any deal could involve significant shareholder dilution, and rebounding slightly today following comments from CEO Per Wullf reassuring investors that the dialog with lenders has been positive.
Technically speaking, yesterday's selloff was decisive. Shares had been holding onto higher lows since bottoming a year ago - but that long-term uptrend got violated with yesterday's drop, and today's rebound isn't changing that support break. Caveat emptor.
Advanced Micro Devices
- Nearest Resistance: $16
- Nearest Support: $10
- Catalyst: Q4 Earnings
Momentum stock Advanced Micro Devices (AMD) is adding onto its year-long rally this afternoon, up 12.5% following a positive round of earnings. AMD lost a cent during the fourth quarter on an adjusted basis, beating out the 1.2-cent loss that analysts expected to see. Likewise, guidance was strong for the quarter ahead, with implied sales falling between $951 million and $1.02 billion - analysts had been expecting $962 million on average.
Part of the strength of AMD's double-digit rally today comes from this stock's bullish trend. Shares have been in a well-defined uptrend since last February, and today's earnings call is coinciding with a test of trendline support. Look for more upside ahead as AMD makes its way up the price channel.
- Nearest Resistance: $8
- Nearest Support: $5.25
- Catalyst: Q1 Earnings
Shares of small-cap biopharmaceutical stock Synergy Pharmaceuticals Inc. (SGYP) are dropping this afternoon, off more than 13% on the heels of an offering that prices shares at a discount to yesterday's prices. The 20.3 million share offering priced at $6.15, with proceeds going towards commercialization of Trulance, new drugs, and working capital.
While the drop today looks painful, it's actually just a correction within the context of an uptrend that's propelled this stock 62% higher in the last 12 months. Look at any successful tests of trendline support down towards $5.25 as a buying opportunity in Synergy.
- Nearest Resistance: $132.50
- Nearest Support: $117.50
- Catalyst: Technical Setup
Facebook (FB) , another of Jim Cramer's AAP portfolio holdings, is seeing a technical setup in play this afternoon, as shares test a key resistance level this week. Shares have been holding onto an uptrend since last February, and after carving out a near-term bottom at trendline support in January, this stock is making a go at long-term resistance up at $132.50.
Put simply, a successful breakout through $132.50 is a fresh buy signal worth pulling the trigger on from here. Keep a close eye on how Facebook trades in the next few sessions.
VanEck Vectors Gold Miners ETF
- Nearest Resistance: $25
- Nearest Support: $22
- Catalyst: Spot Gold Prices
After selling off for most of the last six months, the downtrend in the VanEck Vectors Gold Miners ETF (GDX) - and, more broadly, in gold - is over. GDX broke out above its downtrend when the calendar flipped to 2017, clearing the way for an upside move. Don't let today's correction in GDX fool you - the technical picture looks attractive for this popular gold ETF. For late-to-the-game gold bulls, there's still time to get in on this trend reversal.
- Nearest Resistance: $53.32
- Nearest Support: $50
- Catalyst: Acquisition
Finally, midstream gas stock Oneok Partners LP (OKS) is seeing a 20% pop in shares this afternoon, following news that Oneok (OKE) had agreed to buy the remaining shares of OKS that it didn't already own in an all-stock transaction valued at approximately $9.3 billion as I write. The deal will convert each share of Oneok Partners into 0.985 shares of Oneok stock.
Because the deal is all-stock, OKS will continue to trade as a function of OKE until the deal closes. The tiny premium left in shares today indicates Wall Street is pricing in an 87% probability that the deal gets done without issue - it also means that the money has already been made on the OKS trade at this point.