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:

Code Company Price RSI MktCap$
SPN Sparc Tech Ltd 1.31 85 $ 72,195,108.30
CNR Cannon Resources 0.565 83 $ 37,859,763.15
PLY Playside Studios 0.745 82 $ 71,618,728.12
CRR Critical Resources 0.04 82 $ 41,080,466.78
MAD Mader Group Limited 1.89 82 $ 378,000,000.00
TNG TNG Limited 0.13 81 $ 156,187,130.00
LMG Latrobe Magnesium 0.056 80 $ 77,489,598.13
SHP South Harz Potash 0.19 80 $ 72,096,700.97
ITM Itech Minerals Ltd 0.28 79 $ 23,894,999.19
LIO Lion Energy Limited 0.082 78 $ 22,842,982.58
AND Ansarada Group Ltd 2.25 78 $ 170,575,794.90
AEV Avenira Limited 0.025 77 $ 16,394,203.54
EUR European Lithium Ltd 0.135 77 $ 143,260,056.54
AZL Arizona Lithium Ltd 0.089 77 $ 155,032,990.01
FDV Frontier Digital Ltd 1.77 76 $ 569,384,935.18
RAN Range International 0.015 75 $ 10,381,543.21
HNG HGL Limited 0.315 75 $ 56,355,953.54
XTC Xantippe Res Ltd 0.005 74 $ 20,372,822.01
HT1 Ht&E Limited 1.965 74 $ 405,124,967.52
IVX Invion Ltd 0.029 72 $ 181,809,081.57
AGR Aguia Res Ltd 0.069 72 $ 22,708,085.92
AUQ Alara Resources Ltd 0.022 72 $ 15,519,443.26
BCC Beam Communications 0.385 72 $ 28,520,121.76
LKE Lake Resources 0.935 72 $ 1,065,207,347.32
KOR Korab Resources 0.057 71 $ 19,949,578.86
PIL Peppermint Inv Ltd 0.021 71 $ 37,283,675.22
AMD Arrow Minerals 0.008 71 $ 13,695,988.20
EVO Evolve Education Grp 0.845 71 $ 134,819,313.98
TZL TZ Limited 0.145 70 $ 28,976,342.10
NVX Novonix Limited 7.30 70 $ 3,291,086,220.84

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:

Code Company Price RSI Market Cap
MRL Mayur Resources Ltd 0.185 30 $ 41,084,292.36
PRM Prominence Energy 0.008 29 $ 7,953,482.09
PBH Pointsbet Holdings 7.85 29 $ 2,270,364,037.52
PCH Property Connect 0.0015 29 $ 1,028,795.21
DTC Damstra Holdings 0.75 29 $ 154,080,175.75
BUY Bounty Oil & Gas NL 0.011 29 $ 15,075,510.80
PVE Po Valley Energy Ltd 0.026 29 $ 26,172,729.41
ECG Ecargo Hldg 0.024 29 $ 14,766,000.00
NUH Nuheara Limited 0.021 29 $ 36,263,391.07
BID Bill Identity Ltd 0.3 28 $ 54,821,508.16
CDA Codan Limited 10.17 28 $ 1,864,913,369.85
CBL Control Bionics 0.49 28 $ 25,668,762.06
MMM Marley Spoon 1.04 25 $ 428,917,010.00
OEQ Orion Equities 0.2 18 $ 3,129,845.60
MHI Merchant House 0.105 17 $ 9,897,982.08
SKN Skin Elements Ltd 0.053 10 $ 23,394,272.36