- The top mid cap sectors are utilities and technology.
- Semi equipment is the best scoring industry.
The average mid cap score is 52.01 and that’s below the four week average score of 55.16. Scores are retreating to actionable levels, but have yet to reach that point (see later in today’s report). The average mid cap is trading -30.79% below its 52 week high, -12.92% below its 200 dma, has 7.16 days to cover held short, and is expected to grow its EPS by 14.3% in the coming year.
Utilities, technology, and financials score highest. Healthcare, consumer goods, and services score in line with the average universe score. Industrial goods and basics score below average.
The S&P 400 has delivered positive returns in 8 of the past 10 Q1s, generating a median 6.91% return in the period.
The following chart shows historical mid cap scores back to 2008. Typically, an average score below 50 coincides with an actionable buy point.
Semi equipment (SPIL, TER), application software (LOCK, NUAN), and business software (WBMD, ROVI) are among the strongest scoring mid cap industries. Technology stock strength isn’t too surprising given that, historically, technology baskets have been solid first quarter performers. For example, the only negative Q1 in the past 10 years on the XLK was 2008.
Gas utilities (NJR) and REITs (REG, CLI, NNN) round out the top five scoring industries in mid cap this week.
Only synthetics (CMP, MTX) score above average in basic materials. Packaging & containers (TUP, MINI) and processed & packaged goods (GIS, FLO) score high in consumer goods. REITs and surety & title insurance (RDN) is best in financials. Medical instruments (PKI, TFX, PODD, HAE) is the only above-average scoring basket in healthcare. Industrial electrical (LFUS, BDC) can be bought in industrials. Business services (CMPR, HPY, HCSG), movies (DWA), and truckers (ODFL, KNX) are strongest in services. The top technology groups are semi equipment, application software, and business software. Gas utilities can also be bought.
