Monday, March 22, 2010

Top Companies in The S&P500 To Buy or to Sell: OverBought Outnumber Oversold 22 to 1

We computed the relative strength values of all companies in the S&p500 for three time frames, short (daily), medium (weekly), and long (monthly).

The average RSI7s are remarkably similar:

  • short term: 61.42
  • medium term: 64.63
  • long term: 62.84
However, the number of overbought and oversold companies is quite different.


  • short term: 16; most oversold is NBR (15.78)
  • medium term: 5, most oversold is BSX (23.25)
  • long term: 1, most oversold is AIG (27.85)

  • short term: 164 (!); most overbought is LMT (94.67)
  • medium term: 178 (!), most overbought is EFX (93.42)
  • long term: 146, most overbought is MJN (92.39)

Clearly there are too many overbought companies. In aggregate, there are 22.1 overbought companies for every oversold company. In the long term they are 146:1, the lonely one there is AIG, which is overbought in the short term. Amazing!

Here are the top 30 oversold companies, sorted by our favorite RSIA, in descending order:

There are 147 companies oversold by RSIA.

Disclaimer: The author does not own any of the mentioned stocks.

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