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 and market data 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.
Big picture, the Fed is very much in investors' cross-hairs Wednesday -- market participants are anticipating the central bank to announce a 0.25% hike to short-term interest rates. And that's having a direct effect on which stocks are seeing the most trading volume in today's session.
More importantly, those market-moving narratives are creating trading opportunities for investors who are paying attention.
So, 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: $25
- Nearest Support: $23.50
- Catalyst: Fed Meeting
If you want evidence that the Fed is driving investor behavior today, look no further than the most actively traded issue on the NYSE out the gate: the Financial Select Sector SPDR ETF (XLF) . XLF is one of the easiest ways for investors to get direct exposure to the financial sector, and the fact that it's seeing more active trading than components like Bank of America (BAC) , Citigroup (C) and JPMorgan Chase (JPM) signals that investors are trying to get broadly positioned ahead of the Fed.
But while XLF is correcting a bit Wednesday, the long-term trajectory of this ETF looks strong here. XLF has been holding onto its uptrend since July's lows, and shares are making another run for prior highs at $25. Put simply, if XLF can push through $25 resistance this summer, we've got a new buy signal in the financial sector. Importantly, this big ETF looks much more attractive from a technical standpoint than any of the individual banks it owns. Keep a close eye on how XLF behaves around the $25 level in June.
Worried about how to pay for your golden years? Ken Fisher, founder of Fisher Investments, and TheStreet's Jim Cramer will tell you what you need to know in a June 21 webinar on the market trends that are shaping retirement planning today. Register here for the event, which starts at 11 a.m. ET.