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.
So, today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market...
iShares MSCI Emerging Markets ETF
- Nearest Resistance: $36
- Nearest Support: $33
- Catalyst: Technical Setup
Leading off our list of the week's most actively-traded issues is the iShares MSCI Emerging Markets ETF (EEM) . This $27 billion exchange-traded fund has been a powerhouse in 2016, rallying more than 20% from its lows back in January through today - but that doesn't mean you should buy it now. This week, EEM violated the uptrend that's been in place for most of the year, opening up significant downside risk at this point. $33 looks like the next meaningful support level on the way down from here, but investors should avoid buying EEM until this big emerging markets ETF can start establishing some higher highs and lows again.