Earnings announcements often serve as a catalyst for volatile moves in stocks. Oversold stocks can also make volatile moves. The list below shows stocks that are scheduled to report earnings this week. Just one, Manchester United plc (NYSE: MANU) is oversold. Data from StreetInsider.com shows that the stock has gained an average of 2.6% in the week after announcing earnings. None of the other stocks scheduled to deliver earnings this week are currently oversold but could be watched as potential trades if they move sharply this week.
This list is sorted by ConnorsRSI. In the past, buying on additional weakness after ConnorsRSI has dropped below 20 has also been a profitable trading strategy. In the recently updated guidebook, An Introduction to ConnorsRSI, 2nd Edition which can be downloaded for free here, we provide the rules for a trading system based on ConnorsRSI. The explanation of how that system is developed could provide traders with insights that will help them find systems that are right for their personality.
On average, after the ConnorsRSI reading on a stock falls below 5 we have seen a gain of 2.15% over the next five days. This confirms that MANU should be considered a potential buy.
Now let’s look at the most overbought and oversold stocks (according to ConnorsRSI) heading into trading for September 9, 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).
MANU (Manchester United Ltd) is the most oversold stock with a ConnorsRSI reading of 1.43. This is the second consecutive day MANU has been the most oversold stock.
EWY (Ishares MSCI South Korea Index) is the most oversold non-leveraged ETF with a ConnorsRSI reading of 4.51.
NUGT (Direxion Gold Miners Bull 3X) is the most oversold leveraged ETF with a ConnorsRSI reading of 19.31.
FDP (Fresh Del Monte Produce) is the most overbought stock with a ConnorsRSI reading of 99.16.
IFN (India Fund) is the most overbought ETF with a ConnorsRSI reading of 91.53. This is the second day in a row IFN has been the most oversold ETF.
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 9/8/2014.