5 Small Caps for Momentum Investors

Today I used Barchart to sort the S&P 600 Small Cap Index stocks to find the 5 with the best current momentum.  First I sorted for the most frequent new highs in the last month, then again for technical buy signals of 80% or better.  Next I used the Flipchart feature to review the charts for consistency.  Today's Watch list includes:

California Water Service Group (CWT), Innophos Holdings (IPHS), Allete (ALE), SouthWest Gas (SWX) and Five Below (FIVE)

California Water Service Group (CWT)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 13.15% in the last month
• Relative Strength Index 72.04%
• Technical support level at 31.48
• Recently traded at 31.93 with a 50 day moving average of 28.98

Innophos Holdings (IPHS)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 12.74% in the last month
• Relative Strength Index 72.41%
• Technical support level at 40.80
• Recently traded at 41.60 with a 50 day  moving average of 37.65

Allete (ALE)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 17 new highs and up 12.14% in the last month
• Relative Strength Index 72.42%
• Technical support level at 60.40
• Recently traded at 61.79 with a 50 day moving average of 57.30

SouthWest Gas (SWX)

Barchart technical indicators:\

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 16 new highs and up 9.88% in the last month
• Relative Strength Index 72.83%
• Technical support level at 73.22
• Recently traded at 74.76 with a 50 day moving average of 68.53

Five Below (FIVE)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 15 new highs and up 19.62% in the last month
• Relative Strength Index 68.05%
• Technical support level at 45.55
• Recently traded at 45.97 with a 50 day moving average of 41.37

Allete - Chart of the Day

Allete (ale) is the Barchart Chart of the Day.  The electric utility has a Trend Spotter buy signal, a Weighted Alpha of 27.20+, gained 26.63% in the last year and paid a 3.39% dividend.

The Chart of the Day belongs to Allette (ALE).  I found the electric utility stock by using Barchart to sort today's All Time High list first for the most frequent number of new highs in the last month, then again for technical buy signals of 80% or more.  Next I used the Flipchart feature to review the charts for consistency.

Allete is an energy company. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, Allete owns Allete Clean Energy, based in Duluth, U.S. Water Services headquartered in St. Michael, Minn., BNI Energy in Center, N.D., and has an eight percent equity interest in the American Transmission Co.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 6.38% in the last month
• Relative Strength Index 66.54%
• Technical support level at 59.85
• Recently traded at 60.54 with a 50 day moving average of 56.87

Fundamental factors:

• Market Cap $2.98 billion
• P/E 20.40+
• Dividend yield 3.39%
• Revenue expected to be down 8.90% this year but up again by 1.50% next year
• Earnings estimated to increase 4.20% this year, an additional 10.00% next year and continue to compound annually at the rate of 3.00% for the next 5 years
• Wall STreet analysts issued 1 strong buy, 2 buy, 2 hold and 1 under perform recommendation on the stock