Scanning for November Stocks Most Extended from 200 SMA

Nov 21, 2014: 2:20 PM CST

Which top trending stocks – both bullish and bearish – are most extended from their rising (or falling) 200 day Simple Moving Average?

Let’s use this simple yet effective stock scan to highlight eight trade-trending (or fading) candidates right now:

This scan was created from FinViz.com’s Screener Tool focusing on the stocks most over and under extended from the 200 day SMA.

The scan charts the stocks farthest away from the average in percentage terms.

Right now, Monster (MNST) is the most extended and trending stock, followed by Edwards Life Sciences (EW), Yahoo (YHOO), and Southwest Airlines (LUV).

The general strategy here is to highlight these as strong relative strength candidates and put these on watch-lists for future buy signals, usually on retracements.

The more aggressive strategy is to play a “Mean Reversion” strategy which calls for fading overextended stocks as they (ideally) move back toward rising averages (a counter-trend, short-term play).

Personally, I prefer pro-trend strategies but you can use this list however best fits your trading goals.

Our downtrending extending stocks include the following:

Avon  Products (AVP), Denbury (DNR), Transocean (RIG), and Nabors Industrials (NBR).

If instead you would prefer to trade broader ETFs, my friend John Carter just released a video on some of his favorite ETF options strategies which I’ll also link below:

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

2 Comments

2 Responses to “Scanning for November Stocks Most Extended from 200 SMA”

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