Photo: flickr user Martin Pettit
The technical analysis team at Bank of America/Merrill Lynch has put out a big report on what commodities, stocks, and industries are looking good on a technical basis.It includes a list of the most “overbought” stocks on the S&P 500.
This is a pretty nebulous term, of course, and there are different ways of measuring this. BAML bases its readings on the “relative price” of a security, or the strength its showing compared to the rest of the market. Eventually, everything needs to come to earth.
In its ranking, a score of “1” or above indicates that a stock is overbought. A score just below 1 means the stock is close to being overbought.