The highest scoring names in small cap from 1 year ago (5/23/2013) returned 933 bps more than the Russell 2000. The best performers have been QCOR up 168%, CRZO up 107%, FSS up 58%, MPWR up 58%, CGNX up 57%, and UHAL up 55%.

• Utilities are top scoring across small cap.
• Trucking is the best small cap industry.

The average score across small cap is 44.03 this week, below the four week moving average score of 45.17. The average small cap stock is trading -27.17% below its 52 week high, -5.36% below its 200 dma, and has 8.93 days to cover held short.
 
Utilities are the top scoring small cap sector.  Consumer goods and industrial goods also score above average.  Technology, services, and healthcare score in line.  Financials and basic materials score below average.

Trucking (SAIA, MRTN) is the top scoring industry across small cap. Truck tonnage grew 4.8% year-over-year in April.  Year-to-date, tonnage is 2.9% higher than last year. Railroads (GBX) score high as carload volume growth supports railcar demand. Rail carloads (including intermodal) are up 3.9% year-over-year through the first 19 weeks of 2014.  Auto parts (SMP, MTOR) benefit from rebounding passenger and commercial demand in Europe. EU passenger car registrations grew 4.6% from a year ago in April, bringing year-to-date growth to 7.4%. That marks the 8th consecutive month of year-over-year improvement. Processed & packaged goods (DMND) are top scoring. Post recession cost cutting, packaging innovation, and cross-branding have boosted margin.  Defensive baskets tend to outperform through summer doldrums.

In small cap basic materials, only independent oil & gas (GDP, PVA, CRK) scores above average. The group historically heads higher into summer peak electricity demand season. Nat gas rig activity has returned to growth thanks to improving prices. There are 92 more active rigs operating in the U.S. than at this time last year. In consumer goods, buy auto parts and processed & packaged goods. The top financials industries are P&C insurers (UFCS) and regional banks (MBWM). In healthcare, focus on specialized health services (HWAY) and medical appliances (GB, ARTC, CNMD). In industrial goods, heavy construction (AEGN, MTRX) scores best. Non-residential construction spending grew 4.4% from last year in March. Trucking, railroads, and business services (EXAM, FURX) score highest across services. In technology, buy semi ICs (DIOD), business software (EBIX, NTCT, MSTR), and semi equipment & materials (ATMI, KLIC). NOTE: the semi book-to-bill typically peaks in the second quarter.