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.

 

Running Hot

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

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

WordPress Table
The number of stocks on this week’s Running Hot list rose to 52 — well up from the previous week’s total of 28 (and from the March lows, when only two stocks made the cut).

While the latest data set marks a return to the long-run average — as measured by the number of stocks on the list — it also tracked the last two weeks of the April rally.

However, Friday’s trading session showed sharp volatility isn’t yet a thing of the past as the ASX200 slumped by more than 5 per cent — its biggest fall since March 27.

 

Running Cold

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

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

WordPress Table
The number of stocks “running cold” has continued to dwindle, with just 33 companies populating this week’s list — down from 48 and 60 in each of the two weeks prior.