How to Trade Lilly, Deere and Other Most-Active Stocks Wednesday

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.

Financial Select Sector SPDR ETF

  • Nearest Resistance: $22.50
  • Nearest Support: $19.50
  • Catalyst: Technical Setup

Leading off the list of the most active pre-Thanksgiving trades is the Financial Select Sector SPDR ETF (XLF) . This financial sector fund has been getting plenty of attention in recent weeks, as the financial sector took off following the results of the presidential election earlier this month. Now, XLF is tracking at the top of its price channel, riding trendline resistance for another straight trading session. Long-term, the uptrend is very much alive in XLF. That said, investors looking to build a position in this ETF should either wait for a pullback toward the bottom of the channel, or a breakout through the top of it, before clicking buy.

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