Hot Money Monday: These are 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

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, May 8:

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

A total of 51 ASX small-caps traded with an RSI above 70, just shy of last week’s tally of 52.

And in the current environment, the Small Ords Index has clearly outperformed the big end of town. Friday’s gain capped its 5th straight daily increase, and the Index closed more than 5 per cent higher for the week.

The hot end of this week’s list was heavily populated by resources companies, which took up six of the top 10 positions.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, May 8:

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

Near the height of the crisis in March, that figure jumped to around 200. So the broader trends will be worth watching as way to gauge market sentiment in the months ahead.

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