Of all the stocks trading above $5/share in the Russell 1,000, 24% are trading above their 50-day moving averages. Below we highlight the ones trading the furthest above their 50-days. There are always stocks that exhibit relative strength even in bear markets, and the names below have been strong lately. As shown, Big Lots (BIG) is trading the furthest above its 50-day at 35%, followed by Freeport-McMoRan Copper and Gold (FCX), Rohm and Haas (ROH), Carmax (KMX), Leap Wireless (LEAP), and Morgan Stanley (MS). Other notables on the list of overbought names include CF Industries (CF), Whole Foods (WFMI), Nordstrom (JWN), Amazon.com (AMZN), and Goldman Sachs (GS).
Below we highlight long-term charts showing the % difference between the price and 50-day moving average of Big Lots (BIG) and Freeport-McMoRan (FCX) -- the two most overbought stocks in the Russell 1,000. As shown, the 50-day spreads for both stocks are at the very top end of their historical ranges.
"..the ones trading the furthest above their 50-days." All well and good but is there any proof that selling at the top (or bottom) of the range can be used to actually profit from?
Posted by: Norman | March 14, 2009 at 02:44 AM