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 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.
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: $13
- Catalyst: Barron's Story
Up first on the list of Monday's most actively-traded stocks is $12.3 billion tech firm Advanced Micro Devices (AMD) . AMD has been off to a strong start in 2017. Shares are already up 19.5% year to date, following 2016's huge upside move.
Now, shares are adding 10.8% to their market value following a story published in Barron's that said shares could double again in a year.
From a technical standpoint, AMD's uptrend from the past year is still very much intact this winter. Shares are pushing into new highs on Monday, breaking clear of prior resistance at $12. Despite the size of this stock's rally, there's still time to buy AMD this February.
- Nearest Resistance: $2.40
- Nearest Support: $1.50
- Catalyst: Drug Data
Micro-cap biopharmaceutical stock Galena Biopharma (GALE) is making waves as one of the most actively-traded issues on the Nasdaq on Monday, up 275% after a positive outcome from the independent Data Safety Monitoring Board on two clinical trials.
That about-face in Galena's price trajectory is a welcome shift for shareholders, but it doesn't absolve this stock of its troubles. Shares have still lost 87% of their market value in the last 12 months.
With that bearish price trajectory still not resolved at this point, it's a little early to bet on a more prolonged rebound in Galena at this stage.
iShares MSCI Emerging Markets ETF
- Nearest Resistance: $37.75
- Nearest Support: $36.50
- Catalyst: Technical Setup
The iShares MSCI Emerging Markets ETF (EEM) is seeing a big-volume trading session on Monday, as it is flat on big volume as shares test a key resistance level at $37.75.
The EEM ETF has been bumping its head on a price ceiling at $37.75 since the end of last summer, and after a correction in the fall, shares are making another attempt at breaking higher through that upside price barrier.
Put simply, if the EEM ETF can muster the strength to materially break through $37.75 this week, we'll get a new buy signal in this popular emerging markets ETF.
- Nearest Resistance: N/A
- Nearest Support: $87.50
- Catalyst: Q4 Earnings
Toymaker Hasbro (HAS) is in rally mode on Monday, shooting more than 14% higher on big volume following the firm's fourth-quarter earnings call. Adjusted earnings came in at $1.64 a share for the quarter, exceeding the $1.28 a share average best guess from Wall Street, as well as the highest estimate among analysts.
Hasbro had been range-bound for a while, pinballing between $75 support and $87.50 resistance since last March. Monday's breakout through $87.50 resistance clears the way to more upside potential for this $12 billion toymaker.
From a risk-management standpoint, it makes sense to wait for Hasbro to establish some new semblance of support above its prior range before building a position here.
- Nearest Resistance: $48
- Nearest Support: $44
- Catalyst: Q4 Earnings
Newell met earnings expectations for the fourth quarter, bringing in an 80-cent a share quarterly profit that was in line with Wall Street's average estimate. But the firm's full-year sales view came in below expectations, spurring the selling we're seeing on Monday.
CEO Michael Polk remained bullish, however in an interview with TheStreet.
Polk said he sees "huge opportunity" in the company's core categories to roll up market share globally. "When we can complement our organic agenda with bolt on M&A in the core, we go for it," Polk said.
Technically speaking, Newell is showing some red flags. Shares have been forming a descending triangle pattern, a bearish price setup that triggers a sell if support down at $44 is violated. For now, shares are catching a bid just above that support level, but Newell bulls should keep a close eye on how well this stock holds up at that level in the sessions ahead.
- Nearest Resistance: $32
- Nearest Support: $28
- Catalyst: Pipeline Approval
Shares of $24 billion energy infrastructure firm Williams (WMB) are up 0.8% on big volume on Monday, getting attention following news that the firm had secured approval last week to build its $3 billion Atlantic Sunrise natural gas pipeline expansion project in the Northeast.
Williams has been range-bound for the last several months, trading between resistance at $32 and support down at $28 since September.
While Monday's move higher comes as shares test $28 support yet again, this stock still has a way to go before investors get another test of $32. If you're looking for a high-probability buying opportunity for Williams, wait for this stock to crack $32 before jumping in. That $32 breakout is our indication that the sideways grind is over, and shares are likely to kick off another leg of its uptrend.
- Nearest Resistance: $38
- Nearest Support: $32
- Catalyst: Analyst Upgrade
Rounding out our list of big-volume trades on Monday is $6 billion integrated steel producer U.S. Steel (X) . U.S. Steel has been a solid performer for the past six months, rallying 31% as investors bet on increased demand for steel products under a Trump administration -- and on Monday, shares are up nearly 2% on big volume thanks to an analyst upgrade. U.S. Steel was raided to a buy at Argus, with a price target up at $39.
From a technical standpoint, the price level investors should be watching is resistance at $38. That's the price ceiling that defines the top of the recent consolidation channel that shares have been in since December. If U.S. Steel can catch a bid above that $38 line in the sand, expect more upside ahead from this stock.