BALTIMORE (Stockpickr) -- 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.
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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 thats 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. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today. >>5 Rocket Stocks Worth Buying This Week These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity. Without further ado, heres a look at today's stocks. KB Home Nearest Resistance: $20.50
Nearest Support: $19
Catalyst: Earnings >>5 Stocks Poised for Breakouts Shares of small-cap homebuilder KB Home (KBH) are up more than 7% this afternoon, following first-quarter profits that were bigger than analysts expected. The firm saw earnings of 12 cents per share for the first quarter, vs. an average earnings estimate of 8 cents per share. Rising housing prices were the catalyst for the earnings beat at KBH. KBH gapped up hard this morning, shoving their way back in the uptrending price channel that's been in play since November. While this homebuilder broke down through the bottom of the channel earlier this month, today's move erases that downside. Even though re-entering the trend channel isn't that exciting, it does make higher prices look likely in this stock.
Renren
Nearest Resistance: $7.70
Nearest Support: N/A
Catalyst: Earnings
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On the other side of the spectrum is Renren (REN), the Chinese social media stock. A nasty earnings miss this morning is shoving shares down double digits this afternoon. While raw earnings numbers came in looking good, REN's numbers included the results of a former subsidiary; without them, profits and revenues nosedived for the quarter. From a technical standpoint, this chart is broken. Renren actually broke down through a key support level on Monday, failing to catch a bid at the $7.70 price tag that had previously been a floor for shares. With no semblance of buying pressure in sight, REN is a name that's best avoided from here. To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore. RELATED LINKS: >>Hedge Funds Are Selling These 5 Stocks -- Should You? >>5 Big Health Care Stocks to Trade for Gains >>5 Hated Earnings Stocks You Should Love Follow Stockpickr on Twitter and become a fan on Facebook.
Stock quotes in this article: KBH, REN At the time of publication, author had no positions in stocks mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji
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