After a few weeks when the Hot Money column briefly turned into a ‘bizarro Viagold update’, the ASX put an end to that when it put the obscure rare earths play into suspension on October 15, pending “further enquiries”.

This week a new leader topped the list, as Sparc Technologies (ASX:SPN) ran hot with a 14-day RSI of 85.

Each week, Stockhead recaps ASX stocks that are “running hot” as deduced by the Relative Strength Index (RSI).

The RSI is a technical gauge which measures how trading momentum is affecting the price action.

A reading of 70 is seen as the level at which a company may have been overbought. If a stock has a reading of 30 or below, it could be undervalued.

Click here for a more detailed rundown of what the RSI does and how it’s used.

While there’s usually a pretty good reason if a given stock is running hot (or cold), investors are also on the lookout for opportunities where the price action has separated from fundamentals.
 

Running Hot

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 29:

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Shares in SPN jumped sharply last week after it announced a research partnership with the University of Adelaide and Flinders University to progress an Australian made ‘ultra green hydrogen’ technology.

The process involves the use of photocatalysis — the acceleration of a photoreaction in the presence of a catalyst — in order to extract hydrogen from water without the use of electrolysis.

Nickel play Cannon Resources (ASX:CNR) has also been making a run of late, after hitting a number of thick sulphides at its ‘Musket’ project in WA.

A quick and simple way for a stock to run hot is to raise equity capital at a material premium to its previous trading price, which is what Cannon did last week with a $4m raise at 40c. Shares in CNR closed on Friday at 59c.

Rounding out the top 3 this week was Melbourne-based games developer Playside Studios (ASX:PLY), which is been marching steadily higher since early October.

PLY got a speeding ticket from the ASX on October 11, where it pointed to the Early Access release of its ‘Age of Darkness – Final Stand’ game on the Steam platform on October 8.

The stock continued to climb last week following the release of its quarterly trading update.
 

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 29:

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