The highest scoring names in mid cap from 1 year ago returned 80 bps more than the S&P 500. The best performers have been UA up 94%, ACT up 60%, STZ up 55%, GMCR up 52%, CW up 50%, and ALXN up 39%.

·        Basic materials score best across mid cap.

·        The top mid cap industry is technical & system software.

The average mid cap stock score is 52.63 this week, below the four week moving average score of 57.08. The average mid cap stock is trading -16.62% below its 52 week high, 1.30% above its 200 dma, has 7.83 days to cover held short, and is expected to grow EPS by 19.2% next year.

Basics, technology, healthcare, and financials score above average. Services, industrial goods, consumer goods, and utilities score below average.

The best scoring mid cap industry is technical and system software (CDNX, MCRS). Textiles (DECK, SKX, CRI) are high scoring. Clothing retail sales grew 1.5% year-over-year in the first six months. Information & delivery services (FDS, DNB) offer upside. Drillers (PTEN, ATW) benefit from rising utilization/activity. Gas utilities (PNY, EGN) benefit from conversion/volume growth and pricing.

The best basic materials baskets are drillers, industrial metals & minerals (ARLP), and oil & gas equipment & services (HLX). Coal stockpiles support increased volume if natural gas prices cooperate.

In consumer, only textiles score above average. The top financials groups are asset managers (AB), REITs (HME, REG, WRI, NNN), and investment brokers (MKTX). In healthcare, only hospitals (SEM, LPNT) are above average. Falling bad debt expense supports profitability, while the creation of the Veteran's Choice Fund offers admissions growth support over the coming months. Aerospace/defense (CW, TDY) and industrial electrical equipment (RBC, AOS) score highest in industrial goods. The top services baskets are movies (LGF, CNK) and business services (HPY, RBA). Usually, retail regains upward momentum in the fourth quarter. In technology, concentrate on technical & system software, information & delivery services, and printed circuit boards (FLEX).