Hot Money Monday: The most in-demand stocks on the ASX right now

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Each Monday, Stockhead recaps which stocks are heavily demanded by investors — or running hot.

Stockhead uses the Relative Strength Index (RSI), 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.

Our first edition of Hot Money includes a more detailed description of what the RSI does and how it’s used.

Here is this week’s list:

Running hot

The Hot Money list cooled off slightly over the past couple of weeks. Typically, at least one company registers an RSI reading of above 90, but the top-rated stock posted a reading of only 81.46.

Topping the list was Opticomm Ltd (ASX: OPC), which climbed steadily throughout September after joining the ASX boards on August 21. At Friday’s close of $3.75, the stock has now almost doubled from its $2 listing price.

OPC’s early success highlights the recent trend of investor demand for companies that offer viable broadband solutions to compete against the NBN.

Opticomm provides fibre infrastructure predominantly for new residential developments, and has installed fibre connections for more than 100,000 new blocks of land. Its debut follows the successful listing of broadband provider Uniti Wireless (ASX: UWL) in March this year.

Elsewhere, Stavely Minerals (ASX: SVY) cooled off slightly from last week’s RSI reading of 94.16, but the stock remains near the top of the hot money list after its bigger copper discovery at the Gossen prospect in Victoria.

And biotech Actinogen Medical (ASX:ACW) joined the list, after surging mid-week following news that trials of its Xanamem treatment for Alzheimer’s showed signs of cognitive improvement at doses of 20mg. The stock slumped in May after 10mg trials were shown to be ineffective.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 4:

Running cold

Along with the usual round of struggling resources minnows, this weeks list was also populated by a handful of stocks in the lithium and cannabis sectors.

Among the battery metals plays with an RSI below 30 was Mali Lithium (ASX: MLL), which has recently pivoted to gold as it looks to develop assets next door to its flagship lithium project in Mali.

Also running cold were Lithium Power International (ASX: LPI) and Altura Mining (ASX: AJM), with readings of 29.02 and 28.85 respectively.

Two cannabis stocks also popped up on this week’s list — Althea Group Holdings (ASX:AGH) and Cann Group (ASX: CAN).

Medicinal pot stock Althea lost momentum in September, although the stock jumped on Friday after announcing monthly patient prescriptions had jumped to a record high.

And Cann Group has also struggled for traction since it announced in late-August that it was in the process of securing debt funding for a large-scale expansion at its Mildura manufacturing facility.

Here’s a summary of the stocks that were running cold for the two weeks ending Friday, October 4:

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