How to Add Stock to Your Buy List

images-8Put 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.

SMALL INVESTMENT, BIG POTENTIAL. TheStreet’s Stocks Under $10 has identified a handful of stocks with serious upside potential. See them FREE for 14-days.

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.

  • Nearest Resistance: $21
  • Nearest Support: $20.81
  • Catalyst: Acquisition

Small-cap biotech stock Vitae Pharmaceuticals  (VTAE)  is up more than 158% this afternoon, boosted following news that Allergan  (AGN)  (which is a holding in Jim Cramer’s Action Alerts PLUS charitable portfolio) was offering to buy the smaller company for $21 per share in cash. That is driving enough volume in to Vitae to make this small firm one of the most actively traded stocks on theNasdaq this morning.

The markets may be unpredictable, but Jim Cramer can show you how to navigate it like a pro. Follow his blue-chip portfolio of stocks at Action Alerts PLUS. Join today and try it for 14 days—FREE!

The deal adds Vitae’s psoriasis and dermatitis treatments to Allergan’s pipeline, filling out the company’s skin health offerings. Allergan sees the deal closing by year-end — and the near-immediate gap up to the offer price this morning signals that Wall Street is pricing in a high likelihood of the deal getting done.

For traders who missed the buyout, the money has already been made on the VTAE trade.

Apple  (AAPL)  , a holding in Jim Cramer’s Action Alerts PLUS charitable portfolio, is up 4% on big volume as I write this afternoon, rallying following early presales numbers for the firm’s iPhone 7 and iPhone 7 Plus, which were reported by T-Mobile  (TMUS)  and Sprint  (S)  yesterday. T-Mobile CEO John Legere reported that sales were “like four times bigger than the iPhone 6 for us at the pre-order stage,” with Sprint adding that preorders for the next-gen phones are up 375% versus the same period last year. That sneak peek at sales numbers is sending Apple upwards for the second straight session.

The technical picture has something to do with Apple’s price strength here. Shares are breaking above an important resistance level up at $111, a price level that’s acted like a ceiling for shares since April. From here, prior highs around $120 look like the next target for Apple to take out on the way up.

Both comments and pings are currently closed.

Comments are closed.