Since 2010, the best scoring names in our weekly mid cap reports have outpaced the S&P 400 by a median 4.07% in the following year. The best performers from our list from 1 year ago are TRN up 110%, ILMN up 105%, and ARRS up 73%.

·        Technology is the best scoring mid cap sector.

·        Trucking is the top scoring mid cap industry.

**IMPORTANT** Scores have shifted to reflect Q4 seasonality.

The average mid cap score is 58.15 this week, below the four week moving average score of 56.80. The average mid cap stock is trading -16.96% below its 52 week high, -1.65% below its 200 dma, and has 7.98 days to cover held short.

After rolling scores to reflect fourth quarter seasonality, technology and services score best. Healthcare, industrial goods, and consumer goods score in line. Financials, basics, and utilities score below average.

The top scoring mid cap industry is trucking (ODFL, KNX, HTLD).  NAFTA freight flows grew 8.5% year-over-year in the most recently reported month of July (trucks carry 60% of NAFTA freight). Semi ICs (IRF, FCS) are high scoring. Technical and system software (MCRS, MENT, CDNS) are attractive.  AUM growth and recent volatility support investment brokers (MKTX, SF). Processed & packaged goods HAIN benefit from expanding SKUs overseas and into the convenience store channel.

Steel & iron (CMC, STLD) is the only basics group to score above average in mid cap this week. U.S. steel production grew 2.9% year-over-year in August. In consumer goods, buy processed & packaged goods and textiles (DECK, WWW, SKX). Investment brokers, regional banks (OZRK ASBC, NPBC), and accident & health insurance AFL score highest in financials. Only medical instruments (PKI, DXCM, HRC, HAE) score above average in healthcare. In industrial goods, focus on diversified machinery (MIDD, DRC, BC) and residential construction (NVR, RYL). Trucking, restaurants (CBRL WEN, CAKE), and business services (VPRT, HPY, RBA) are the best scoring services groups.  Semi ICs, technical & system software, and information & delivery services DNB are the highest scoring technology baskets.

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