4 Big 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 .
Nearest Resistance: $5.50
Nearest Support: $3.75
Catalyst: Earnings Miss
Groupon (GRPN) missed earnings -- quelle surprise. Shares of the social deal stock are down around 20% as I write following a 1-cent loss for the fourth quarter and a less than amazing outlook for the quarter ahead. Let's be clear, Groupon hasn't exactly been a bastion of fundamental strength since it went public in late 2011. That said, the amount of negative surprise we're seeing in shares today is, well, surprising.
More significant is the technical outlook that this stock is now showing off. Groupon gapped down hard this morning, shoving its way down through a handful of weaker support levels. In short, this stock is having some serious trouble catching a bid. Investors looking for a "bargain" to buy GRPN need to look elsewhere. American Capital Agency
Nearest Resistance: $32
Nearest Support: $31.50
Catalyst: Share Offering
$11 billion real estate investment trust American Capital Agency (AGNC) is another stock that's getting sold off in today's session, albeit for a different reason. AGNC is off around 3% this afternoon following a share offering announcement -- the firm announced yesterday that it planned to sell 50 million shares on the open market. Offerings are rarely positive because they indicate a pressing need for cash and dilute existing owners' stakes; Mr. Market is reacting expectedly.