The most overbought and oversold S&P 500 stocks to start February

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Stocks kicked off the year with a strong month for bulls, with growth names leading the way.

The Nasdaq Composite (COMP.IND) and Nasdaq 100 (NDX) (QQQ) gained nearly 11% in January, topping the S&P 500 (SP500) (NYSEARCA:SPY) gain of 6.2% and 2.8% for a lagging Dow (DJI) (DIA).

The S&P also hit the "January Industry Trifecta" that indicates an almost guaranteed positive return for 2023.

On the heels of the rally, several S&P stocks are kicking off February in Overbought territory, according to the Relative Strength Index technical measure.

RSI is a technical indicator that measures the momentum of a security based on its closing prices. A stock is considered Overbought with an RSI above 70 and Oversold with an RIS below 30. (See much more on how RSI is calculated and how to read it.)

Just two stocks start the month Oversold:

1. NextEra Energy (NEE), RSI 27.21
2. Johnson & Johnson (JNJ), RSI 27.40

In contrast, 38 S&P names are Overbought. Of those, the 10 furthest in Overbought territory with an RSI above 75 are:

1. PulteGroup (PHM), RSI 82.38
2. BorgWarner (BWA), RSI 76.81
3. United Rentals (URI), RSI 76.49
4. Align Technology (ALGN), RSI 76.29
5. Tapestry (TPR), RSI 75.72
6. State Street (STT), RSI 75.59
7. American Express (AXP), RSI 75.43
8. Salesforce (CRM), RSI 75.20
9. Pentair (PNR), RSI 75.12
10. Las Vegas Sands (LVS), RSI 75.02

See the top 10 S&P stocks that led the January rally.

Comments

[karondongotbanned]

another 30% to go this year. keep buying, cant lose, impossible to decline. long tsla at 300, meta at 300, and FUBO at 31, and BABA at 250. long live mega caps. recession is over, dont listen to doom and gloom articles as they have no idea what Powell is doing. just follow Powell will make you rich.

[jtmilan]

these pumpers are bound to fail 🥱📉

[idaustin]

“The S&P also hit the "January Industry Trifecta" that indicates an almost guaranteed positive return for 2023.”

Idiotic

[johnseibert3]

How did you come to this information? Is it somewhere on Seeking Alpha or did you utilize another method and what was it? I'm looking to follow the RSI's of my portfolio without looking at each stock individually.

[darnoc111]

@johnseibert3 RSI is used in charting. I use Yahoo's charting and RSI is one of the options you can add to the chart. I also use bollinger bands, MACD, and Stolastics. Charting I find is a useful tool, but not the only thing to consider.

[johnseibert3]

@darnoc111 Yahoo's charting is strong when looking at a few stocks, but it gets tedious when trying to look at a large number of positions (such as each of the S&P 500). I'm just wondering if there is a good way to do it at scale, especially on a daily basis.

[darnoc111]

@johnseibert3 I do not know of anything. I like it for individual stocks.

[Illuminati Investments]

Stocks are as overbought as eggs at Costco.

[mantles]

@Illuminati Investments are they also as overpriced as the eggs?

[thirdcamper]

I'm a little grumpy about STT being overbought since I was down to the last 300 shares I wanted to buy and it got away from me. Hopefully it comes back down.

[Michael Dolen]

@thirdcamper Same here. Got my full $BLK position last year at the low, never got to $STT when it was at its low.

[El Scorcho]

What an amazing turnaround for the US after the disaster of the 2019-20 (and 2017-18 wasn't too great either).

[DrewMcVay]

@El Scorcho huh

[mantles]

@El Scorcho I’m going to agree with you as I’m optimistic about a ‘23 bull market…

[Carson7]

NEE has much further to correct. Their renewable pipeline just blew up..

[Mr. Gumbo]

@Carson7 about time they come back to earth!

[Apkiv4]

@Carson7 much further? Nice crystal ball you have there

[kpmedia]

@Carson7 At least 10% more, minimum.

[grewalg87]

oversold can get oversold and overbought can get overbought. Technical indicators only really work for really short term trends.

[mantles]

@grewalg87 Yessir!!

[Winstonia]

This has been a spectacular rebuking of the bears this month. A pullback wouldn’t be surprising but the year should be a good one for stocks unless a Black Swan event occurs.

[Niki Naza]

@Winstonia
You make it sound as if the 6% SPX is sooo huge

[Yoman1289]

@Niki Naza Plenty of growth stocks up 100% off their bottoms

[Carson7]

NEE STILL has a PE of 35! For a utility! Way, way out of bounds. Duke (DUK) PE is 20.

[Coach Baker]

@Carson7 And DUK is still out of bounds.

[Bigrig04]

@Carson7 comparing PEs without looking under the hood of both businesses is futile.

[Carson7]

@Kid Cisco exactly! I remember when NEE (FPL) ALWAYS traded near a 14 PE for 10 years. Now, PE is 35 and the CEO JUST LEFT THE COMPANY?

[SuperPac]

38 overbought and merely 2 oversold.
Telling.
Frothy market, disconnected from Reality. Needs higher for longer, much longer.