5 Big Tech 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 Alcatel-Lucent
Nearest Resistance: $1.80
Nearest Support: $1.55
Catalyst: Earnings Miss
Alcatel-Lucent (ALU) is getting hit hard following its earnings call; as I write, shares of ALU are down more than 7.6% on the day. The firm's 60.5-cent fourth-quarter loss was about twice as deep as analysts had expected, and today's selling likely brings an end to the uptrend that shareholders had been enjoying in the Paris-based communications firm.
Today's big red candle on ALU's chart is a big deal. It's sending shares back down to a support level from the end of January. That last test was an indication that demand for shares is wearing at $1.80 -- a breakdown below $1.55 support is a signal that this stock is making a double top pattern. If that happens, I'd recommend being a seller. Sprint
Nearest Resistance: $5.80
Nearest Support: $5.55
Sprint (S) is another communications name that reported a big fourth-quarter loss today; it burned $1.3 billion for the quarter. The key difference is that Sprint's pending majority stake purchase from Softbank helps to mute a lot of the risk in shares of the nation's third-largest cellular phone carrier.