·       Utilities (small sample size) & financials are best across small cap.
·       The strongest scoring small cap industry is savings & loans.
The average small cap stock score is 54.50 and that’s above the four week average score of 52.68. The average small cap stock in our universe is trading -31.11% below its 52 week high, -6.13% below its 200 dma, and has 8.24 days to cover held short.
Utilities, financials, and industrials score highest. Technology and consumer goods also score above average. Services, healthcare, and basics score below average and are industry and stock specific under weights.
Savings & loans (NWBI, BRKL, BANR, DCOM, PROV, COLB, OCFC), heavy construction (GVA, AEGN, MTRX), regional banks (CFNL, TCBK, LKFN, BBCN, MBWM), staffing (KFY, KFRC, CCRN), and application software (LOGM, EPAY, PRFT, QLYS) offer the most upside in small cap.
Across small cap basic materials, there are no above average scoring baskets. Processed & packaged goods (DMND, BDBD) and auto parts (SRI, SMP) are best in consumer goods. The top financials industries are S&Ls, regional banks, and investment brokers (KCG, GFIG). Home healthcare (LHCG, CHE, AMED) and medical instruments (CMN, MGCD, LMNX, VASC, ICUI) are strong in healthcare. The top industrials baskets include heavy construction, aerospace/defense (AVAV, LMIA), and industrial electrical (ULBI, DAKT). In services, buy staffing, management services (NCI, HSII), and resorts & casinos (MCRI, BYD). Application software, business software (EBIX, PRFTÂ , CSGS, TSYS), and specialized semi (MPWR) should be overweight in technology.
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