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

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Each Monday, Stockhead recaps which stocks are most heavily in demand by investors — running hot.

The analysis is based on 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.

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

Stocks were treading water amid the volatility last week, but the Running Hot list (Bear Market Edition) remains particularly short by historical standards.

The local index posted three straight days of gains as markets assessed the impact of huge government stimulus measures, particularly in the US.

Both of those increases were book-ended by two sharp falls, as the ASX tanked hard into the close on Friday afternoon after starting the day in positive territory.

Amid all of that, we picked up a total of nine stocks with a two-week RSI measure above 60 (instead of the usual 70) — down from 11 last week.

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

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

Running Cold

The government-stimulus rally helped bring this week’s Running Cold list out of the doldrums (well, at least slightly).

Lastly, we only included stocks with an RSI below 15 — a move required to get the number of companies on the list below 100 (there were 99).

This week we included companies with an RSI below 20 (still below the standard measure of 30). A total of 62 companies remained ice cold, as investors brace for more volatility in the weeks ahead.

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

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

However, amid the market chaos oOh!media still managed to complete a $156m share placement to institutional investors, with plans to pay down debt and refocus on costs.

Shares in the company came out of a trading halt on Friday and fell by around 30 per cent to 60.5c, down from a 2020 high above $3 in mid-January.

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