As we have been highlighting in our Sector Snapshot over the past few weeks, finding a stock that is overbought in the current environment has been like searching for a needle in a haystack. There were a few days earlier this month that not a single stock in the S&P 500 was overbought, and even today after a sizable rally in the past week just 1.2% of stocks in the index – 6 stocks- are overbought. In the snapshot from our Trend Analyzer below we show these stocks. While there are some new arrivals to the overbought club, Gilead Sciences (GILD) and Regeneron (REGN), two companies seeking a medical solution to the COVID-19 virus, have been the few names teetering in and out of overbought territory for the past month now. While those two have been overbought on an off and on basis, they are not the most overbought. Citrix Systems (CTXS) holds that title after finishing the day yesterday nearly 3 standard deviations above its 50-DMA. No other stock is nearly as overbought with Digital Realty Trust (DLR) the next most overbought at 2 standard deviations above its 50-DMA. For DLR, along with peer Equinix (EQIX) and Energy stocks Cabot Oil and Gas (COG) the picture today is very different than one week ago when each one was oversold.
Below, we show the chart of these same six stocks. Like the broader market, each one has been very volatile recently but over the past year have generally remained in uptrends with the exception of COG which, like the rest of the sector, has been in a prolonged downtrend. Start a two-week free trial to Bespoke Institutional to access our Trend Analyzer, Chart Scanner, and more.