Hot Money Monday is typically the domain of ASX small caps, but this week saw plenty of larger companies near the top end of the list as investors responded to some reporting season surprises.

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, August 27:

Scroll or swipe to reveal table. Click headings to sort.

Among the large caps running hot this week was Wisetech Global (ASX:WTC), the $15bn tech company which fended off a short-seller attack in 2019.

Investors responded well to the company’s full-year results, which showed strong momentum in its CargoWise logistics platform but even the ASX was surprised at Wednesday’s 28% surge, issuing a speeding ticket (price query) as WTC shares traded steadily at new all-time highs above $46 into the end of the week.

Equalling WTC’s 14-day RSI reading of 86 was large cap health company Blackmores (ASX:BKL), which rose for six straight days either side of its full-year results on Thursday.

While revenues fell in Australia, the results was highlighted by strong momentum in China where the group booked core earnings of $14.3m, up from 200,000 in FY20, while China revenues rose 27.8% to $131.6m.

Accompanying that growth, Blackmores said its “Global Innovation Centre was established in Shanghai in FY21, providing us with rich local insights and exciting new capabilities in Asia”.

At the smaller end of the market, is there something going on an rare earths and gold explorer Orion Metals (ASX:ORM)?

The stock hasn’t made any announcements since July, but it ripped higher last Wednesday with a gain of 70% on no news.

That followed up a 17% rally on Tuesday, which was enough to see ORM top this week’s Running Hot list with a 14-day RSI of 89.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, August 27:

Scroll or swipe to reveal table. Click headings to sort.

Code Company Price RSI MktCap$
SZL Sezzle Inc 6.56 30 $ 1,305,111,079.80
CVV Caravel Minerals Ltd 0.32 30 $ 121,088,005.44
BAT Battery Minerals Ltd 0.012 30 $ 25,233,930.40
PCH Property Connect 0.0015 29 $ 1,028,795.21
LEX Lefroy Exploration 0.385 29 $ 46,887,620.13
VXR Venturex Resources 0.625 28 $ 449,496,516.07
MGU Magnum Mining & Exploration 0.1 27 $ 49,614,491.40
MAN Mandrake Res Ltd 0.06 27 $ 27,820,220.58
AX1 Accent Group Ltd 2.19 27 $ 1,224,618,775.90
HHI Health House Int Ltd 0.1 27 $ 5,915,867.40
CAP Carpentaria Resource 0.1025 26 $ 71,305,295.00
GWR GWR Group Ltd 0.21 25 $ 72,668,746.32
RVR Red River Resources 0.155 25 $ 82,843,898.72
FEX Fenix Resources Ltd 0.26 21 $ 134,580,967.20
TI1 Tombador Iron 0.05 20 $ 54,346,413.51
MPH Mediland Pharm 0.056 18 $ 17,514,762.16
AMD Arrow Minerals 0.005 18 $ 9,161,908.80

Among the stocks running cold this week was online brokerage firm Selfwealth (ASX:SWF), which competes for market share with other low-cost trading platforms.

The company’s full-year results on August 20 showed annual revenues more than doubled to $18.4m, driven by a 105% lift in active traders.

However, the stock has dipped 16% in October to 31c, up slightly from its 2017 IPO price of 20c.