At Birinyi Associates we continue to find the best opportunities in picking stocks. Sectors and styles continue to be volatile and while ETFs increase exposure they also increase the potential for headline risk. In this trader's market we believe market players should concentrate on names they know and understand. The traditional timing models that we have presented on this blog are based on a 50-day moving average. This approach has become less useful as many stocks have moved far enough that the 50-day average is not a meaningful measuring point.
Below we highlight a list of the S&P 500 stocks that are the most oversold based on a 12-day moving average. This list along with a list of the most overbought stocks are distributed to Birinyi's Mini-Institutional subscribers daily. Being a somewhat contrarian indicator, these stocks are below the bottom end of their trading range, and given strength should rally at least to the average and often to the top of the range (Short-Term TE). The "Extreme" column shows the most oversold and overbought levels for the stocks within the last year.
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