Overbought Stocks

With the S&P 500 rallying 8% since last Monday, there are lots of stocks now trading well above their 50-day moving averages.  Below we highlight the stocks trading the furthest above their 50-days at the moment.  As shown, Whirlpool (WHR) is the furthest above its 50-day at 26.74%.  WHR is followed by SLM, SNDK, AKS, and LSI.  Other notable names on the list of overbought stocks include Intel (INTC), US Steel (X), American Express (AXP), and Texas Instruments (TXN).  If you think we're due for a pullback after 6 straight days of gains for the Dow, the names below could see reversals.

 

There are stocks that remain well below their 50-days, however.  Two usual suspects are at the top of the list -- CIT and AIG.  Citigroup remains 16.8% below its 50-day, and key energy names like Tesoro, Sunoco, and Hess are also on the list.

 

Comments

[Blu Kenyon]

this is a valuable list as it shows what sectors are the best for early strength and those that will take longer to turn. In addition to what stocks are extended and those on life support. I have sold puts on GE as I would like to own it at slightly lower prices and am long INTC as they will continue to dominate their market.