How to Trade the Week's Most Active Stocks

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: $37
  • Nearest Support: $34
  • Catalyst: Technical Setup

Emerging markets ended the week with plenty of investor attention, the iShares MSCI Emerging Markets ETF (EEM) ending Friday's session as one of the most actively-traded names on the NYSE. Besides the macro headlines putting investor eyes on EEM following this month's election results, the technical price action is another big factor in play this week. While EEM violated its long-term uptrend last week, the big ETF is catching a bid at newfound $34 support. At this point, it's still a little early to dive into a buy in EEM, but a sustained push through $35 would tip the risk/reward in favor of more upside in the week ahead.

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