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.
Citizens Financial Group
Citizens Financial Group (CFG) is out the gate with big volume today, after an 86 million share offering priced at $26 this morning. The offering comes from parent company Royal Bank of Scotland Group (RBS). The Edinburgh-based banking giant plans on totally exiting its position in Citizens Financial by the end of the year.
Citizens Financial Group (CFG) is out the gate with big volume today, after an 86 million share offering priced at $26 this morning. The offering comes from parent company Royal Bank of Scotland Group (RBS). The Edinburgh-based banking giant plans on totally exiting its position in Citizens Financial by the end of the year.
- Nearest Resistance: $28.50
- Nearest Support: $25.75
- Catalyst: Secondary Offering
Now looks like a good time to be a buyer in Citizen's Financial. That's because shares actually caught a big bid at $25.75 support yesterday, clearing the way for another re-test of this year's $28.50 high water mark.
If you decide to buy here, $25.75 support is a logical place to park a protective stop below.
If you decide to buy here, $25.75 support is a logical place to park a protective stop below.
Micron Technology
Micron Technology (MU - Get Report) is enjoying a second straight day of upside this afternoon, up 3.5% after Tuesday's press conference with Intel (INTC) announcing a new faster class of storage chips. Micron's 3D Xpoint brand runs as much as 1,000-times faster than the current class of high-speed flash media, a development that could give Micron a big, and hard-to-replicate edge in the high-end storage space.
Micron Technology (MU - Get Report) is enjoying a second straight day of upside this afternoon, up 3.5% after Tuesday's press conference with Intel (INTC) announcing a new faster class of storage chips. Micron's 3D Xpoint brand runs as much as 1,000-times faster than the current class of high-speed flash media, a development that could give Micron a big, and hard-to-replicate edge in the high-end storage space.
- Nearest Resistance: $24
- Nearest Support: $20
- Catalyst: 3D Xpoint Chips
After selling off for the last year, Micron is finally looking attractive again -- at least in the near-term. Shares are breaking out above $20 resistance with today's announcement, signaling a buy. Micron could trade up to $24 before it gets challenged by resistance.
Gilead Sciences
Biopharmaceutical giant Gilead Sciences (GILD - Get Report) is up 4.4% after its second-quarter earnings release today. The firm reported earnings of $3.15 per share for the quarter, besting analysts' $2.70 average estimate. Gilead also hiked its revenue expectations for 2015, raising its range by $1 billion to between $29 billion and $30 billion.
Biopharmaceutical giant Gilead Sciences (GILD - Get Report) is up 4.4% after its second-quarter earnings release today. The firm reported earnings of $3.15 per share for the quarter, besting analysts' $2.70 average estimate. Gilead also hiked its revenue expectations for 2015, raising its range by $1 billion to between $29 billion and $30 billion.
- Nearest Resistance: $122.50
- Nearest Support: $110
- Catalyst: Q2 Earnings
As expected, Gilead bounced off of trend line support this week, providing a buying opportunity for longs looking to build a position in this stock. From here, look out for a re-test of prior resistance around $122.50.
U.S. Steel
Steel producer U.S. Steel (X - Get Report) is rallying this afternoon, up more than 7% following second-quarter earnings.
- Nearest Resistance: $20
- Nearest Support: $16
- Catalyst: Q2 Earnings
While earnings came in a bit shy of analysts' estimates, the firm announced the latest updates on its plans to cut costs and raw material inventories, giving investors hope for a move in the right direction.
Shares are coming up to test resistance at $20 this afternoon, but they're failing to move above it. U.S. Steel is looking constructive right now from a technical standpoint, but it's early to call this big materials stock a buy just yet.
Shares are coming up to test resistance at $20 this afternoon, but they're failing to move above it. U.S. Steel is looking constructive right now from a technical standpoint, but it's early to call this big materials stock a buy just yet.
Builders FirstSource
Building product supplier Builders FirstSource (BLDR - Get Report) is up 7% this afternoon following a secondary share offering that priced at $12.80 this morning.
- Nearest Resistance: $14
- Nearest Support: $12
- Catalyst: Secondary Offering
Builders FirstSource actually upsized the offering to 12 million shares from 11 million, a move that normally doesn't yield large upside. But Builders FirstSource is reacting positively to the secondary update because the proceeds are going to be used for its transformational $1.6 billion acquisition of Pro-Build Holdings, a deal that helped to spike shares in April.
At this point, Builders FirstSource is consolidating in a well-defined sideways price channel. If buyers can get shares to hold above $14, we've got a breakout buy signal. Until then, traders should wait on shares.
By Jonas Elmerraji
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