2 Hot Stocks to Trade (or Not)
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.
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. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.
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, here's a look at today's stocks .
>>5 Stocks Under $10 Ready to Soar Higher News Corp.
Nearest Resistance: $28.50
Nearest Support: $25.50
Catalyst: Earnings, Cut Expectations
News Corp. (NWSA) is getting attention after earnings today, with shares down more than 2.3% as I write. No, that doesn't mean that the firm's numbers were bad -- only that Wall Street expected them to be better. All told, the firm earned $1.03 per share, meeting analysts' expectations for the quarter. The selling is coming as a result of a cut to the firm's 2013 expectations.
More important, today's price action points to more downside in shares. NWSA had been trending higher for all of 2013, failing to establish any meaningful support levels along the way. For that reason, the nearest strong pocket of demand for shares looks like $25.50, which is not something that investors want to hear right now. If you're looking for a place to jump into NWSA at lower levels, wait for it to find support first. Elan