Today's Best Small Caps

As I write this post the majority of stocks in the Barchart data base are still trading under their 20, 50 and 100 day moving averages.  The percentage of those trading above:

• 28.83% - above the 20 DMA
• 15.89% - above the 50 DMA
• 18.04% - above the 100 DMA

I used Barchart to sort the S&P 600 Small Cap Index stocks first for the highest technical buy signals, then I used the Flipchart feature to review the charts.  Today's list includes Laclede Group (LG),

Francesca's (FRAN), Electo Scientific Industries (ESIO), Coresite Realty (COR) and Agree Realty (ADC):

Laclede Group (LG)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 3 new highs and up 2.31% in the last month
• Relative Strength Index 65.58%
• Technical support level at 59.18
• Recently traded at 61.61 with a 50 day moving average of 58.39

Francesca's (FRAN)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 3 new highs and up 3.08% in the last month
• Relative Strength Index 59.81%
• technical support level at 17.58
• Recently traded at 18.03 with a 50 day moving average of 16.32

Electro Scientific Industries (ESIO)

Barchart technical indicators:

• 100% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 8.47% in the last month
• Relative Strength Index 65.86%
• Technical support level at 5.60
• Recently traded at 5.76 with a 50 day moving average of 5.23

Coresite Realty (COR)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 8.19% in the last month'
• Relative Strength Index 66.63%
• Technical support level at 60.15
• Recently traded at 62.18 with a 50 day moving average of 57.90

Agree Realty (ADC)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 3.70% in the last month
• Relative Strength Index 64.47%
• Technical support level at 34.11
• Recently traded at 35.30 with a 50 day moving average of 33.47

Today's 5 Best Small Caps

I wanted to find the 5 small cap stocks with the best current momentum so I used Barchart to sort the S&P 600 Small Cap Index stocks first for the highest technical buy signals, then I used the Flipchart feature to review the charts.

The list today includes Quality Systems (QSII), Electro Scientific Industries (ESIO), New Jersey Resources (NJR), Healthcare Realty Trust (HR), and Francesca's Holdings (FRAN).

Quality Systems (QSII)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 7.84% in the last month
• Relative Strength Index 65.30%
• Technical support level at 16.46
• Recently traded at 17.07 with a 50 day moving average of 15.44

Electro Scientific Industries (ESIO)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 5.80% in the last month
• Relative Strength Index 61.30%
• Technical support level at 5.15
• Recently traded at 5.47 with a 50 day moving average of 5.11

New Jersey Resources (NJR)

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 14.64% in the last month
• Relative Strength Index 67.53%
• Technical support level at 33.34
• Recently traded at 34.01 with a 50 day moving average of 30.89

Healthcare Realty Trust (HR)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 4.31% in the last month
• Relative Strength Index 59.75
• Technical support level at 28.12
• Recently traded at 28.33 with a 50 day moving average of 26.99

Francesca's Holdings (FRAN)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 18.93% in the last month
• Relative Strength Index 69.29%
• Technical support level at 17.37
• Recently traded at 18.29 with a 50 day moving average of 15.34

Barchart Morning Call 9/4

Barchart Morning Call

BC - Tue Sep 04, 7:00AM CDT

Overnight Developments

• Sep E-mini S&Ps this morning are slightly lower by -0.11% on lower European and Asian stocks and on nervousness heading into today's U.S. ISM manufacturing index, Thursday's ECB meeting, and Friday's U.S. unemployment report (Aug payrolls expected +125,000). Commodity prices this morning are up by an average +0.48% with Oct crude oil up +0.39%, Dec gold up +0.28%, Dec copper up +0.72%, and with agricultural prices trading mostly higher. The Euro Stoxx 50 index is down -0.20% today on Moody's cut in the EU rating outlook and on some long liquidation pressure after Monday's rally of +0.92%. The dollar index this morning is up +0.07% while EUR/USD is down -0.06%. Sep 10-year T-note prices are down -2.5 ticks.
• Asian stocks today closed mostly lower: Japan -0.10%, Hong Kong -0.66%, China -1.08%, Taiwan +0.01%, Australia -0.60%, Singapore -0.19%, South Korea -0.27%, India +0.32%, Turkey +0.05%.
• Moody's cut the outlook for the European Union's Aaa rating to negative from stable due to risks to Germany, France, and the Netherlands. Moody's said, "The creditworthiness of these member states is highly correlated, as they are all exposed, albeit to varying degrees, to the euro-area debt crisis."
• The 10-year Italian bond yield today is down 5 bp at 5.72% on reports that ECB President Draghi told an EU committee on Monday that the ECB's plan is to buy bonds with maturities up to 3 years. The ECB on Thursday is widely expected to announce the details of its bond buying plan. French President Hollande is scheduled to meet today in Rome with Italian Prime Minister Monti.
• The UK Aug PMI manufacturing index rose by 4.3 points to 49.5 from a revised 45.2 in July and was much stronger than market expectations for a report of 46.1.
• On Monday, Germany's Aug final PMI manufacturing index was revised lower by 0.4 points to 44.7 from the preliminary report of 45.1. Eurozone's Aug final PMI manufacturing index was revised 0.2 points lower to 45.1 from the preliminary report of 45.3.
• China's Aug manufacturing PMI report on Saturday from the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed a sharp -0.9 point decline to 49.2, falling below the expansion-contraction level of 50.0 for the first time since November 2011. On Monday, China's manufacturing PMI from HSBC/Markit for August was revised 0.2 points lower to 47.6 from the flash report of 47.8. That put the PMI down sharply by 1.7 points from July. The manufacturing PMI reports were negative indicators for the Chinese economy but the markets took the reports to mean that Chinese government economic stimulus is more likely.
  Market Comments
  • Sep E-mini S&Ps this morning are trading -1.50 points (-0.11%) on this morning's -0.20% sell-off in the Euro Stoxx 50 and on general market concerns ahead of this week's key economic news that includes Thursday's ECB meeting and Friday's U.S. Aug unemployment report. E-mini S&Ps were also undercut by the weak Chinese manufacturing PMI reports that were released on Saturday and Monday, although those reports also boosted the chances that the Chinese government will launch new stimulus measures. The U.S. stock market on Friday whipsawed higher after Fed Chairman Bernanke's speech and finished with moderate gains: S&P 500 +0.51%, Dow Jones +0.69%, Nasdaq 100 +0.67%. Bullish factors included (1) Fed Chairman Bernanke's assertion that the Fed will ease again "if economic conditions warrant," (2) the unexpected increase in the final Aug U.S. University of Michigan consumer confidence, and (3) the stronger than expected +2.8% increase in July factory orders, the biggest gain in a year. Limiting gains in stocks was the bigger-than-expected decline in the Aug Chicago purchasing managers index (-0.7 to 53.0) and global growth concerns after Japan's July industrial production unexpectedly contracted by -1.2% m/m and German July retail sales unexpectedly weakened by -0.9% m/m.
  • Dec 10-year T-notes this morning are down 2.5 ticks. Dec 10-year T-note futures prices on Friday rebounded from early losses and posted a 1-month high and finished with moderate gains after Fed Chairman Bernanke wouldn't rule out additional bond purchases: TYZ2 +18.5, FVZ2 +10.2. Bearish factors included the stronger-than-expected economic data on July factory orders and Aug University of Michigan consumer confidence that helped fuel a rally in stocks.
  • The dollar index this morning is slightly higher by +0.05 (+0.07%), with EUR/USD down -0.0007 (-0.06%) and USD/JPY +0.12 (+0.15%). The dollar index on Friday slumped to a 3-1/4 month low and finished with moderate losses on concern Fed Chairman Bernanke may go ahead with additional dollar negative bond purchases in an effort to boost the economy: Dollar index -0.483 (-0.59%), EUR/USD +0.0075 (+0.60%), USD/JPY -0.24 (-0.31%).
  • Oct WTI crude oil prices this morning are up +0.38 points (+0.39%) a barrel and Oct gasoline is up +0.0245 (+0.82%) on hopes for additional central bank stimulus during September and on continued disruptions from Hurricane Isaac last week. As of Monday, 58% of oil production and 39% of natural gas production in the Gulf of Mexico was still closed down, according to the U.S. Bureau of Safety and Environmental Enforcement. Crude oil and gasoline prices on Friday rallied and closed higher after the dollar weakened when Fed Chairman Bernanke said he wouldn't rule out additional stimulus to stimulate the economy: CLV2 +1.01 (+1.07%), RBV2 +0.00648 (+2.23%). Other bullish factors included the stronger-than-expected U.S. economic data on July factory orders and Aug University of Michigan consumer confidence along with speculation that U.S. gasoline inventories will tighten after Hurricane Isaac shut down 13% of Gulf Coast refining capacity.
  • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit http://www.barchart.com/register/crbfms_usmc.php
    Today's U.S. Earnings Reports Earnings reports (ranked by market cap): CPB-Campbell Soup (Consensus $0.38), SFD-Smithfield Foods (0.45), CIM-Chimera Investment (0.10), FCE-Forest City Enterprises (0.06), FRAN-Francesca's Holdings (0.24), GWRE-Guidewire Software (0.04), CUB-Cubic Corp. (0.77), FNSR-Finisar (0.14), NX-Quanex Building Products (0.22).
    Global Financial Calendar
    

    Tuesday 9/4/12
    United States
    1000 ET	Aug ISM manufacturing expected +0.2 to 50.0, July +0.1 to 49.8. Aug ISM prices paid expected +7.0 to 46.5, July +2.5 to 39.5.
    1000 ET	July construction spending expected +0.4%, Jun +0.4%.
    1100 ET	USDA weekly grain export inspections.
    1130 ET	Weekly 3-mo and 6-mo T-bill auctions.
    1600 ET	USDA Crop Progress
    1700 ET	Aug total vehicle sales expected 14.17 million, July 14.05 million. Aug domestic vehicle sales expected 11.00 million, July 11.00 million.
    United Kingdom
    0430 ET	UK Aug construction PMI expected-0.9 to 50.0, July 50.9.
    Euro-Zone
    0500 ET	Eurozone July PPI expected +0.2% m/m and +1.6% y/y, June -0.5% m/m and +1.8% y/y.
    0630 ET	EU President Herman Von Rompuy meets German Chancellor Merkel in Berlin.
    CHI
    2230 ET	China Aug HSBC services PMI, previous 53.1.

    Barchart.com provides Financial Quotes, Charts and Technical Analysis for Stock and Commodity Traders.

Barchart Morning Call 3/13

Barchart Morning Call

Barchart.com - 2 hrs 34 mins ago

Overnight Developments

• Global stocks this morning are higher with the Euro Stoxx 50 up +1.10% and Jun S&Ps up +8.10 points at a fresh contract high. The main bullish factor for stocks and commodities today is the larger than expected increase in March German investor confidence on signs the sovereign debt crisis was abating. The Mar German ZEW economic sentiment rose +16.9 to 22.3, stronger than expectations of +4.6 to 10.0 and its best level in 21 months. Another positive for stocks was the +2.5% y/y increase in Feb French CPI, smaller than expectations of +2.6% y/y as inflation pressures recede. The euro fell back against the dollar after European Commissioner Barroso said the situation in Europe "remains fragile as we are not yet out of the crisis," while the head of the Euro-Zone finance ministers, Jean-Claude Juncker, said Spanish Prime Minister Rajoy's goal of a deficit of 5.8% of GDP "is dead." European finance chiefs are calling on Spain to cut an additional 0.5% of deficit out of the 2012 budget, 10-days after Prime Minister Rajoy raised Spain's deficit target for the year. The dollar rose against most currencies on speculation today's Feb U.S. retail sales will be strong enough to keep the Fed from signaling additional dollar negative easing measures at its FOMC meeting today.
• Asian stocks today closed higher with Japan up +0.09%, China +1.00%, Australia +1.21%, South Korea +1.20%, India +1.28%. Japanese stocks closed higher as exporters rallied when the yen tumbled to a 10-3/4 month low against the dollar, although stocks fell back from their best levels after the BOJ kept the benchmark rate unchanged at 0.00% to 0.10% and also maintained its asset purchase target at 30 trillion yen following its 2-day policy meeting. Chinese stocks received a boost and finished stronger after Deutsche Bank raised its GDP forecast for China this year to 8.6% from 8.3%, while Nomura hiked its China GDP estimate to 8.2% from 7.9%.

Overnight U.S. Stock News

• June S&Ps this morning are trading up +8.10 points at a fresh contract high. The U.S. stock market Monday settled mixed as global growth concerns were offset by improvement in the U.S. labor market: Dow Jones +0.29%, S&P 500 +0.02%, Nasdaq Composite -0.16%. Bearish factors Monday included (1) concerns over a slowdown in the global economy after Feb China exports rose less than expected (+18.4% y/y versus expectations of +31.1% y/y), (2) concern that Greece may still need additional international support after Moody's Investors Service said that Greece faces "significant challenges" in the coming years to achieve fiscal targets required to satisfy conditions for international support and may not regain market access when its second bailout expires, and (3) weakness in bank stocks after the cost of insuring against default on European sovereign bonds increased to a 1-3/4 month high.
• Bullish factors Monday included (1) continued improvement in the U.S. labor market after the Feb Conference Board Employment Trends Index rose to 107.5, the highest in 3-1/2 years, (2) comments from the head of the Euro-Zone finance ministers, Jean-Claude Juncker, who said he had "no doubt" that a second bailout program for Greece would be approved, and (3) speculation that recent weak economic data from China will prompt the Chinese government into additional easing measures to spur economic growth.
• Yahoo! (YHOO) rose 1.8% in pre-market trading after it filed a complaint in federal court late yesterday seeking triple damages and an order barring Facebook from infringing on 10 of its patents.

Today's Market Focus

• June 10-year T-notes this morning are down -3.5 ticks. T-note prices Monday strengthened and settled higher on global economic growth concerns after Feb China exports rose less than expected along with concern Greece will need further international assistance after its debt swap: TYM2 +1.0, FVM2 -1.2, EDU2 unchanged. Bullish factors Monday included (1) the smaller-than-expected increase in Feb China exports, which signals a slowdown in global economic growth, (2) the statement from Moody's Investors Service that Greece faces "significant challenges" in the coming years to achieve fiscal targets required to satisfy conditions for international support and may not regain market access when its second bailout expires, (3) strong demand for U.S. government debt by U.S. banks after Fed data showed commercial lenders purchased $78.2 billion of Treasuries and securities of agencies in Jan and Feb of this year, compared with purchases of $62.6 billion for all of 2011, and (4) decent demand for the Treasury's $32 billion auction of 3-year T-notes that had a bid-to-cover ratio of 3.44, higher than the 12-auction average of 3.34. Bearish factors included (1) the increase in the Feb Conference Board Employment Trends Index to 107.5, the highest in 3-1/2 years and another sign of improvement in the U.S. labor market and (2) supply pressures ahead of the Treasury's $21 billion auction of 10-year T-notes on Tuesday.
• The dollar index this morning is stronger with the dollar/yen +0.46 yen and the euro/dollar -0.44 cents. The dollar index Monday rallied up to a 1-1/2 month high early but then shed its advance and settled lower on reduced safe-haven demand as U.S. job prospects brightened in Feb: Dollar Index -0.151, USD/JPY -0.214, EUR/USD +0.00322. Bearish factors included (1) reduced safe-haven demand for the dollar after the Feb Conference Board Employment Trends Index rose 1.4% to 107.5, the highest in 3-1/2 years and another sign the labor market is gaining traction, and (2) strength in the yen against the dollar after Jan Japan machine orders rose more than expected. Bullish factors included (1) increased safe-haven demand for the dollar after the cost of insuring against default on European sovereign bonds increased as the Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments rose 4 bp to 355, a 1-3/4 month high and (2) weakness in the Chinese yuan against the dollar after the Feb China trade deficit widened to -$31.48 billion, larger than expectations of -$5.35 billion and the widest in 22 years.
• Apr crude oil prices this morning are up +45 cents a barrel and Apr gasoline is +1.43 cents per gallon. Crude oil and gasoline prices Monday closed lower after Chinese economic data signaled slower growth in the world's second-largest consumer of crude oil: CLJ12 -$1.06, RBJ -0.94. Bearish factors included (1) the smaller-than-expected increases in Feb China exports, which signals slower economic growth and energy demand, (2) the statement from the secretary-general of the IEA who said "even now the global oil market is well-supplied" and that new discoveries are enough to replace depleting oil fields, and (3) comments from UAE oil minister Mohamed Al-Hamli who tried to jawbone prices lower when he said crude prices are "on the high side," along with comments from Oman Oil Minister Al-Rumhy who said oil prices are "a bit high" and should be at $100 a barrel. Bullish factors included (1) the weaker dollar, which encourages investment demand in commodities and (2) the stronger than expected Jan Japan machine orders, which signals greater-than-expected fuel consumption in the world's third-largest oil consumer.

Today's U.S. Earnings Reports Earnings reports (confirmed releases, sorted by mkt cap): VIP-VimpelCom Ltd. (BEST earnings consensus $0.17), WFT-Weatherford International Ltd. (0.32), FDS-Factset Research Systems (1.12), FRAN-Francesca's Holdings (0.17), TLP-Transmontaigne Partners LP (0.55).
Global Financial Calendar

Tuesday 3/13/12
United States
0745 ET	ICSC (Int?l Council of Shopping Centers) weekly retailer sales.
0830 ET	Feb retail sales expected +1.1% and +0.7% less autos, Jan +0.4% and +0.7% less autos.
0855 ET	Redbook weekly retailer sales.
0900 ET	FOMC begins 1-day policy meeting.
1000 ET	Mar IBD/TIPP economic optimism expected +0.6 to 50.0, Feb +1.9 to 49.4.
1000 ET	Jan business inventories expected +0.5%, Dec +0.4%.
1130 ET	Weekly 4-week T-bill auction.
1300 ET	Treasury auctions $21 billion 10-year T-notes.
1415 ET	FOMC announces interest rate decision (no change expected to the federal funds rate target range of zero to 0.25%).
France
0230 ET	Feb France CPI (EU harmonized) expected +0.5% m/m and +2.6% y/y, Jan -0.4% m/m and +2.6% y/y.
United Kingdom
0530 ET	Jan U.K. DCLG house prices, Dec +0.1% y/y.
Germany
0600 ET	Mar German ZEW economic sentiment expected +4.6 to 10.0, Feb +27.0 to 5.4. Mar ZEW current situation expected +1.2 to 41.5, Feb +11.9 to 40.3.
Euro-Zone
0730 ET	ECB President Mario Draghi speaks at an event in Paris.
Japan
1950 ET	Q1 Japan BSI all industry, Q4 -2.5 q/q. Q1 BSI large manufacturing, Q4 -6.1 q/q.

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