Larry Connors will be teaching a new Volatility Spikes course on October 25 and 28, and this is your opportunity to learn this strategy before it is no longer available the general public.
Click here for details and to register for one of our free upcoming live webinars where you will learn more about the Volatility Spikes Trading Seminar.
The TradingMarkets Screener can provide a variety of lists that help traders gauge the strength and trend of the stock market. This is done by sorting on the different columns in the screener. One of the simplest screens is found by sorting on the price percent change to see the day’s biggest gainers or losers. On Wednesday, one of the top gainers was Acuity Brands (NYSE: AYI) which closed up 10.97%. The stock’s gain came after the company announced better than expected earnings.
AYI’s gain also came after the stock became deeply oversold. On Tuesday, before the earnings announcement, AYI closed with an oversold ConnorsRSI reading of 12.95. ConnorsRSI readings below 20 are considered oversold.
Earnings announcements often provide a catalyst for a large price move as AYI demonstrated on Wednesday. Stocks expected to release earnings within a few days can be monitored with a WatchList at The TradingMarkets Screener. That function is found under the Screener or Live Screener tabs at the web site. This site can provide a large amount of useful information that traders can use to develop and implement market-beating strategies.
Now let’s look at the most overbought and oversold stocks (according to ConnorsRSI) heading into trading for October 2, 2014. ConnorsRSI is a proprietary and quantified momentum oscillator developed by Connors Research that indicates the level to which a security is overbought (high values) or oversold (low values).
PAH (Platform Specialty Products Corp) is the most oversold stock with a ConnorsRSI reading of 0.67.
XME (SPDR S&P Metals & Mining) is the most oversold non-leveraged ETF with a ConnorsRSI reading of 1.73.
MVV (Proshares Ultra Midcap 400) is the most oversold leveraged ETF with a ConnorsRSI reading of 8.98.
RBA (Ritchie Bros. Auctioneers Inc) is the most overbought stock with a ConnorsRSI reading of 94.78.
VXZ (iPath S&P 500 VIX MT Futures ETN) is the most overbought ETF with a ConnorsRSI reading of 91.18.
TradingMarkets Lists provide users pre-populated lists of stocks and ETFs identifying symbols with overbought and oversold ConnorsRSI and Bollinger Bands® readings. The Screener Lists are powered by The TradingMarkets Screener.
All data is as of the end of day on 10/1/2014.