Sunday, March 14, 2010

Top 25 to Buy and Top 25 To Sell Out of the Most 100 Popular Stocks and ETFs in North America

We computed the relative strength values of the top 100 most popular stocks and ETFs that trade in North America (popular by trading volume). We then sorted them by RSIA, which is the average of the daily, weekly and monthly values.

We have run extensive studies and backtesting on why we use certain values using a newly developed tool we developed, more on this later.

The relative strength indicator is a good measure of overbought and oversold conditions. Here are the top 25 most overbought popular stocks, and the top 25 most overbought popular stocks.

Top 25 Most Oversold:

Most oversold are FAZ, SRS and UNG. Unfortunately these are three of the worst possible ETFs available, one is leveraged 3X , the other one leveraged 2X (both to stay aways from), and the last is UNG, which we have extensively written before, also in the 'stay away' from category. There is a reason why some stocks are oversold. They are right on in this case.

PFE is the first non-leveraged non worst-of a kind here. Note the presence of Yahama Gold, AUY, up there.

Top 25 Most Overbought:

Here the situation is different as we have real companies and ETFs at the top. The champion oversold is Ford (F), followed by the XLY ETF, and Home Depot (HD). Cars, consumer discretionary products, and constructions materials! As if the economy were flying on all cylinders. This is really buyer beware.

Note that the Russel 2000 IWM ETF is also way up there.

Note: You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due diligence. This is not advice. Options are very dangerous and may cause 100% loss.

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