Top 10 Most Overbought and Oversold Names in the S&P 500

By ChartLabPro.com  NOV 09, 2012 11:25 AM

Three of the most overbought names include PulteGroup, The McGraw-Hill Companies, and Whirlpool Corporation.

 


MINYANVILLE ORIGINAL ChartLabPro.com has updated its top 10 most overbought and oversold names within the S&P 500 (INDEXSP:.INX).  Three of the most overbought names in the S&P 500 include PulteGroup (NYSE:PHM), The McGraw-Hill Companies (NYSE:MHP) and Whirlpool Corporation (NYSE:WHR). For new readers, we like to point out that we do not use the widely followed RSI (Relative Strength Index) for overbought and oversold measures, which provides too many false signals.  We use our own proprietary countertrend indicator.  Just because these names are overbought, however, this is not an endorsement by any means to short them.

Conversely, with the top 10 oversold names, you will notice four out of the 10 names are semiconductor and hardware related sectors that are going through what can be perceived as a longer term secular shift.  These names include Advanced Micro Devices (NYSE:AMD), Intel Corporation (NASDAQ:INTC), Hewlett-Packard (NYSE:HPQ) and Dell (NASDAQ:DELL). To date, these names have been value traps.  At this juncture these four names are all rated a Strong Sell (1), and we would need to see them move back to a Buy before getting long. 


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