How to Trade the Market's Most-Active Stocks


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.

Must Read: Warren Buffett's Top 10 Dividend Stocks

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.

Without further ado, here's a look at today's stocks.

Must Read: Sell These 5 Stocks Before It's Too Late

iShares MSCI Japan ETF

Nearest Resistance: $12.20
Nearest Support: $11.90
Catalyst: BoJ Stimulus

One of the highest-volume issues on the market Friday was, not surprisingly, the iShares MSCI Japan ETF (EWJ) . The exchange-traded fund, which tracks a basket of Japanese stocks, climbed nearly 5% higher by Friday's close, buoyed by news that the Bank of Japan announced a new quantitative easing measure overnight. The central bank plans on increasing its money market operations at 80 trillion yen annually in a move to fight against the pressures of deflation.

From here, EWJ is within grabbing distance of previous highs at $12.20. That's the line in the sand to watch here; if EWJ can catch a bid above $12.20, consider it a big buy signal.

Must Read: 5 Stocks Insiders Love Right Now

Market Vectors Gold Miners ETF

Nearest Resistance: $20
Nearest Support: N/A
Catalyst: BoJ Stimulus

ETFs saw big action on Friday in the Market Vectors Gold Miners ETF (GDX) , a fund that tracks a basket of gold mining stocks. GDX sank more than 5.4% on huge volume during the course of the session. The drop in GDX came as a direct result of the Bank of Japan's stimulus announcement; inflating the currency of the U.S.' fifth-largest trading partner means that the dollar rallied hard on Friday, and gold, which is quoted in dollars, nosedived. Since gold miners are basically a leveraged bet on miners, they took it even worse.

From a technical standpoint, they can't look much worse than GDX. Shares violated key support at $20 earlier in the week, and Friday's decline was just a continuation into the "no man's land" to the downside. At this point, goldbugs should stay on the sidelines and wait for some semblance of support before even thinking about buying GDX again. Caveat emptor.

Must Read: 5 Big Stocks to Trade for Gains as QE3 Ends

Kinross Gold

Nearest Resistance: $2.75
Nearest Support: N/A
Catalyst: BoJ Stimulus

As bad as things look in GDX, they look even worse in shares of $3 billion mining stock Kinross Gold (KGC) . From a performance standpoint, Kinross has been one of the worst-in-breed major gold miners to own in 2014; shares are down more than 50% since the calendar flipped to January. And they extended that decline by 13.7% on Friday.

KGC has been underperforming the Market Vectors Gold Miners ETF materially, and that painful capitulation means that it saw huge volume Friday as investors tried to flee the fall. Like GDX, however, there's still a lot of downside risk left in Kinross. Shares still haven't carved out any semblance of support, so it's a stock that's best avoided in November.

Must Read: 5 Breakout Stocks Under $10 Set to Soar

Crown Castle International

Nearest Resistance: $85
Nearest Support: $78
Catalyst: Q3 Earnings

Last up, Crown Castle International (CCI) saw an earnings-induced drop on Friday, selling off to the tune of 6.15% thanks to forecasts for the year ahead that came in shy of expectations. While the firm earned profits of 29 cents per share during the third quarter (beating analysts' 27-cent best guess), and boosted its dividend, it missed on 2015 outlook numbers. The firm expects to bring in funds from operations of $4.31 to $4.37 per share next year, shy of the $4.47 consensus estimate.

Technically speaking, CCI is down but it's not out. Shares settled at $78 and change, a key support level that's stopped selling two previous times in the past few months. With the uptrend intact from February's lows, it's a little early to call it quits in Crown Castle at this point, but investors should keep a very close eye on whether this stock is able to hold $78 in the week ahead. If that level gets violated, consider taking gains in November.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in the names mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji

If you liked this article you might like

Intermediate Trade: Japan ETF

Intermediate Trade: Japan ETF

Intermediate Trade: iShares MSCI Japan ETF

Intermediate Trade: iShares MSCI Japan ETF

How ETFs Can Boost Your Portfolio

How ETFs Can Boost Your Portfolio

Asian Shares Hit Decade High On Record Profits (Again)

Asian Shares Hit Decade High On Record Profits (Again)

Intermediate Trade: iShares MSCI Japan ETF

Intermediate Trade: iShares MSCI Japan ETF