Below is a list of the 30 S&P 500 stocks that are currently trading the farthest above their 50-day moving averages. We have run the 30 stocks through our trading range screen as well so you can see the recent momentum of these overbought stocks. For each stock, the dot represents where it is currently trading within its range, and the end of the tail is where it was trading one week ago.
One thing to notice here is that because some stocks are more volatile than others, one stock that is trading 16% above its 50-day moving average may be considered extremely overbought (AKAM) in the red zone, while another stock may just be slightly overbought (MPC) in the light red zone. This is due to the fact that the trading ranges take a stock's volatility into account.
As shown, Sprint Nextel (S) is the farthest above its 50-day of any stock in the S&P 500 at +41.82%. MetroPCS (PCS) -- another telecom stock -- ranks second at +37.75%, followed by Western Digital (WDC), Constellation Brands (STZ), Cablevision (CVC) and NRG Energy (NRG). All of these stocks are more than 20% above their 50-days.
While not at the top of the list, there are quite a few Energy stocks that make the top 30. Valero (VLO), Cabot (COG), Marathon (MRO) and Baker Hughes (BHI) are just a few Energy names trading sharply above their 50-days. Along with Western Digital, there are four other Technology stocks on the list -- SNDK, AKAM, STX and JBL. Notably absent are Financial stocks.
The large majority of stocks on the overbought list have experienced strong upside momentum over the past week, but there are a few that have actually declined within their trading ranges. These include STZ, CVC, NRG, SNDK and BHI. If you're long any of these names, it may be worth locking in profits.
If you'd like to run your portfolio through Bespoke's Custom Trading Range Screen, contact us at 914-315-1248 to learn how.