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 ...
Frontier Communications Corp.
- Nearest Resistance: $3
- Nearest Support: N/A
- Catalyst: Analyst Downgrade
Up first on our list of the market's most actively traded stocks today is $2.4 billion telco Frontier Communications Corp. (FTR) . Frontier is down nearly 11% this afternoon, swatted lower following an analyst downgrade from Goldman Sachs. Frontier was downgraded by Goldman to sell, with a price target lowered from $3 to $1.50.
From a technical standpoint, Frontier Communications has looked toxic all month long. Shares violated an important support level at $3 at the end of February, and they've been pointing lower ever since. Today's double-digit drop is a reminder that the downside risk in FTR hasn't been worked out yet.