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

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.

Here’s this week’s list:

Running Hot

As market-watchers would know, the debate around overpriced tech stocks has ramped up in recent weeks, amid concern in some quarters about high valuations (relative to earnings) and a high-profile short-seller report against WiseTech Global.

But that hasn’t stopped another software company, Class Ltd (ASX:CL1), jumping to the top of this week’s hot-money table after a steady run-up in its share price.

Class, which provides cloud-software solutions to streamline accounting and administration tasks (with a key focus on Self-Managed Super Funds), hasn’t had much news lately.

Despite that, the stock has found steady demand to rise from around $1.20 in early September to almost $2. That’s a new 2019 high, although Class remains off levels above $3 it reached in early 2018.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, November 1:

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

Running Cold

While we’ve noted the prevalence of pot stocks in this list over recent weeks, a bout of investor indifference towards the cannabis sector appears to be becoming more of an established trend.

The data showed a number of cannabis stocks were propping up this week’s cold-money list, including Althea Group (ASX:AGH), which continues to struggle after news that cornerstone Canadian investor Aphria was selling its stake in the company.

Other pot stocks that were languishing at the tail-end of the list included Creso Pharma (ASX:CPH), Cann Group (ASX:CAN), Elixinol Global (ASX:EXL) and Botanix Pharmaceuticals (ASX:BOT).

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, November 1:

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