Back to Oversold for the Internet Group

by Bespoke Investment Group

Below is an updated look at our trading range screen for the 30 largest Internet stocks.  For each stock, the dot represents where it is currently trading, while the tail represents where it was trading one week ago.  The black vertical "N" line represents each stock's 50-day moving average, and moves into the green or red zones are considered oversold or overbought.

As shown, 24 of the 30 largest Internet stocks are back to oversold territory after experiencing a big drop over the last two trading days.  Groupon (GRPN) and AOL (AOL) are at the most oversold levels after suffering big losses on earnings yesterday.  Just 3 of the 30 stocks are currently above their 50-days -- EQIX, OTEX and Z.  Across the board, names like Google (GOOGL), Facebook (FB), (AMZN), Netflix (NFLX), Yahoo (YHOO) and Pandora (P) are oversold.  While this group is in a clear downtrend, they still experience bounces, and when they get to extreme oversold territory, they're usually primed for a short-term bounce.



Copyright © Bespoke Investment Group

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