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.
Marvell Technology Group
Semiconductor firm Marvell Technology Group (MRVL - Get Report) is up 3% on big volume this afternoon, higher thanks to rumors that the firm is getting buyout interest from Shanghai Pudong Science and Technology Investment. Sources are saying that the two groups are meeting this week to negotiate a possible deal -- which could attract other going-private transactions for Marvell as well.
- Nearest Resistance: $14
- Nearest Support: $12.25
- Catalyst: Buyout Rumors
Even though shares of Marvell are reacting well to the acquisition rumor, this stock is still stuck in a very well-defined downtrend. In fact, shares are only now just bouncing off the bottom of the channel. And while a confirmed deal would obviously slingshot Marvell's share price, that's more of a lottery ticket move than a high-probability trade.
Deal notwithstanding, Marvell looks pointed lower in the long-term.
Marathon Petroleum
Midstream energy firm Marathon Petroleum (MPC - Get Report) is up almost 10% this afternoon, following an announcement that Marathon's pipeline unit will acquire MarkWest Energy Partners in a merger deal worth $15.8 billion.
- Nearest Resistance: N/A
- Nearest Support: $64
- Catalyst: Merger Deal
The deal will dramatically increase the scale of Marathon's pipeline business, making it the nation's fourth-largest master limited partnership. Investors are bidding shares higher on hopes that economies of scale will make the business more valuable than the sum of its parts.
Technically speaking, Marathon is in breakout mode right now. Shares actually broke out at the beginning of July, clearing prior resistance at $54. Today's big move higher cements that move. From here, the high-probability trade is still to the up-side.
If you decide to buy into the Marathon story this week, the 50-day moving average is a logical place for traders to park a protective stop.
If you decide to buy into the Marathon story this week, the 50-day moving average is a logical place for traders to park a protective stop.
Microsoft
Nearest Resistance: $49
Nearest Support: $44
Catalyst: Technical Setup
Nearest Support: $44
Catalyst: Technical Setup
Technology giant Microsoft (MSFT - Get Report) is participating in the broad market bounce this afternoon, up more than 1.8% on big volume as of this writing.
Microsoft is continuing its big technical bounce off of $44 support from last week, increasing the chances that this big stock will move up to re-test prior highs at $49. This still looks like a good buying opportunity for traders who want to ride that nearly 10% move higher this summer.
If you decide to buy here, it makes sense to put a stop on the other side of Microsoft's $44 support line.
Microsoft is continuing its big technical bounce off of $44 support from last week, increasing the chances that this big stock will move up to re-test prior highs at $49. This still looks like a good buying opportunity for traders who want to ride that nearly 10% move higher this summer.
If you decide to buy here, it makes sense to put a stop on the other side of Microsoft's $44 support line.
Fitbit
Recent IPO Fitbit (FIT) is rallying hard this afternoon, up almost 5% as of this writing, thanks to a series of positive analyst initiations on the stock.
- Nearest Resistance: $44.50
- Nearest Support: $42
- Catalyst: Analyst Ratings
Analysts at a handful of Wall Street firms released their new ratings on Fitbit this morning, with recommendations ranging from the equivalent of hold to buy. That bullish skew to Fitbit's ratings is spurring buying this afternoon.
Technically, Fitbit's trading history is limited, but zoom into an hourly chart and things start looking pretty constructive. On the hourly, Fitbit is forming an ascending triangle pattern with resistance up at $44.50. Shares are testing that big breakout level in today's session.
If Fitbit can break into new highs at $44.50, then look out for even more upside ahead this summer.
If Fitbit can break into new highs at $44.50, then look out for even more upside ahead this summer.
By Jonas Elmerraji
thanks!
ReplyDeleteWell spoken and to the point. I too am impressed by all the hype and will follow his picks with a mindset that if it goes up fast sell and take profits. Thanks!
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