5 Great Small Caps

Today I wanted to find 5 Small Cap stocks that had great returns but still had some momentum left.  I used Barchart to sort the S&P 600 Small Cap Index stocks first for the highest Weighted Alpha, next for technical buy signals of 80% or more and then used the Flipchart feature to make sure they were all above their 20, 50 and 100 day moving averages.  Today's Watch List includes:

Kemet (KEM), Electro Scientific Industries (ESIO), Spectrum Pharmaceuticals (SPPI), Advansix (ASIX) and Integer (ITGR)



Kemet (KEM)

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 33.55% in the last month
• Relative Strength Index 79.93%
• Technical support level at 25.65
• Recently traded at 2691 with a 50 day moving average of 21.71

Electo Scientific Industries (ESIO)

Barchart technical indicators:

• 96% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 7 new highs and up 21.36% in the last month
• Relative Strength Index 77.61%
• Technical support level at 14.70
• Recently traded at 15.50 with a 50 day moving average of 12.79

Spectrum Pharmaceutical (SPPI)

Barchart technical indicators:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 40.31% in the last month
• Relative Strength Index 69.43%
• Technical support level at 13.53
• Recently traded at 14.25 with a 50 day moving average of 10.95

Advansix (ASIX)

Barchart technical indicators:

• 80% technical buy signals
• Trend Spotter buy signal
• Above ts 20, 50 and 100 day moving averages
• 11 new highs and up 21.18% in the last month
• Relative Strength Index 75.28%
• Technical support level at 44.06
• Recently traded at 44.27 with a 50 day moving average of 36.34

Integer (ITGR)

Barchart technical indicator:

• 88% technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 15.02% in the last month
• Relative Strength Index 70.65%
• Technical support level at 53.98
• Recently traded at 54.00 with a 50 day moving average of 48.29

MORNING CALL 9/27

Barchart Morning Call

Barchart.com - Wed Sep 27, 6:36AM CDT

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.18%) this morning are up +0.14%, the dollar index rallied to a 1-month high and the 10-year T-note yield jumped to a 1-3/4 month high of 2.299% as details of President Trump’s tax plan emerge. The President will announce the details of his plan later today in Indiana, but people with knowledge of the plan said the rate on corporations will be set at 20%, down from the current 35%, and businesses would be allowed to immediately write off their capital spending for at least 5-years. The top tax rate for individuals will be cut to 35%, but the plan leaves it up to Congress to decide whether to create a higher bracket for those at the top of the income sale. European stocks are up +0.51% at a 2-3/4 month high, led by a rally in exporter companies, as EUR/USD tumbled to a 5-week low, which boosts the earnings prospects of exporters. Asian stocks settled mixed: Japan -0.31%, Hong Kong +0.47%, China +0.05%, Taiwan +0.68%, Australia -0.12%, Singapore +0.75%, South Korea -0.15%, India -1.39%. Chinese stocks eked out a small gain after China Aug industrial profits posted their largest gain in 4-years, while Japan's Nikkei Stock Index fell to a 1-week low, although losses were limited after USD/JPY climbed to a 2-1/4 month high and gave a boost to exporters.

The dollar index (DXY00 +0.51%) is up +0.42% at a 1-month high. EUR/USD (^EURUSD) is down -0.41% at a 5-week low. USD/JPY (^USDJPY) is up +0.61% at a 2-1/4 month high.

Dec 10-year T-note prices (ZNZ17 -0.38%) are down ticks -15.5 at a 2-1/2 month nearest-futures low as details of President Trump's tax plan are revealed.

Eurozone Aug M3 money supply rose +5.0% y/y, stronger than expectations of +4.6% y/y and the largest increase in 5 months.

UK Sep CBI retailing reported sales jumped to 42, stronger than expectations of 8 and the highest in 2 years.

China Aug industrial profits rose +24.0% y/y, the largest increase in 4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -9.7% with purchase sub-index -10.8%and refi sub-index -8.5%), (2) Aug durable goods orders (expected +1.0% and +0.3% ex-transportation, Jul -6.8% and +0.6 ex-transportation), (3) Aug pending home sales (expected -0.5%, Jul -0.8% m/m and -0.5% y/y), (4) the Treasury auctions $13 billion of 2-year floating rate and $34 billion 5-year T-notes, (5) St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at Truman State University in Kirksville, MO, (6) Boston Fed President Eric Rosengren (non-voter) speaks to eh Money Marketeers of NYU, (7) EIA weekly Petroleum Status Report.

Notable Russell 1000 earnings reports today include: Thor Industries (1.96), Jabil (0.61).

U.S. IPO's scheduled to price today: Roku (ROKU), NuCana PLC (NCNA), Deciphera Pharmaceuticals (DCPH), Nightstar Therapeutics (NITE).

Equity conferences this week: Wolfe Research Conference on Tue-Thu, Deutsche Bank Energy Conference on Wed, Barrington Research Fall Investment Conference on Wed, Bernstein Pan European Strategic Decisions Conference on Wed, LEERINK Partners Rare Disease & Immuno-Oncology Conference on Wed-Thu, B. Riley Consumer Conference on Thu.

OVERNIGHT U.S. STOCK MOVERS

Amazon.com (AMZN -0.13%) was resumed wth an 'Outperform' at Wells Fargo Securities awith a price target of $1,400.

Darden Restaurants (DRI -6.53%) was upgraded to 'Outperform' from 'Neutral' at Baird with a 12-month target price of $94.

Six Flags Entertainment (SIX +0.43%) gained 3% in after-hours trading when it was announced that it will replace Parexel International in the S&P MidCap 400 prior to the open of trading on Monday, October 2.

KEMET (KEM unch) rose 4% in after-hours trading when it was announced that it will replace Astoria Financial in the S&P SmallCap 600 prior to the open of trading on Monday, October 2.

Nike (NKE +0.88%) fell 3% in after-hours trading after it reported Q1 revenue of $9.07 billion, below consensus of $9.09 billion, citing declining growth in North America.

Micron Technology (MU -1.98%) rose over 2% in after-hours trading after it reported Q4 adjusted EPS of $2.02, stronger than consensus of $1.84, and then said it sees Q1 adjusted EPS of $2.09 to $2.33, above consensus of $1.84.

Cintas (CTAS -0.56%) climbed almost 3% in after-hours trading after it reported Q1 revenue of $1.61 billion, higher than consensus of $1.57 billion, and then said it sees full-year revenue of $6.33 billion-$6.40 billion, the midpoint above consensus of $6.33 billion.

Ascendis Pharma A/S (ASND +2.68%) dropped 4% in after-hours trading after it announced that it had commenced an underwritten public offering of $125 million of American Depository Shares, each of which represents one ordinary share of Ascendis.

Westlake Chemical Partners LP (WLKP +0.63%) slid 8% in after-hours trading after 4.5 common units were offered after the close of trading via UBS, Citi, Barclays and Bank of America/Merrill Lynch that were a 6.64% to 8.71% discount to Tuesday's closing price of $24.10.

Editas Medicine (EDIT -3.93%) rose 3% in after-hours trading after its EDIT-101 drug to treat Congenital Amaurosis type 10 received orphan medicinal product designation from the European Medicines Agency.

Intra-Cellular Therapies (ITCI -2.88%) dropped 7% in after-hours trading after it announced that it had commenced an underwritten public offering of $150 million in shares of its common stock.

Twitter (TWTR -2.30%) gained almost 2% in after-hours trading after it said it will test a new 280-character limit on tweets.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 +0.18%) this morning are up +3.50 points (+0.14%). Tuesday's closes: S&P 500 +0.01%, Dow Jones -0.05%, Nasdaq +0.24%. The S&P 500 on Tuesday closed little changed. Stocks were undercut by the weaker-than-expected U.S. Aug new home sales report of -3.4% to an 8-month low of 560,000 and by hawkish comments from Fed Chair Yellen that signal she favors a Dec rate hike when she warned that the Fed should be "wary of moving too gradually" on raising interest rates and that "it would be imprudent to keep monetary policy on hold until inflation is back to 2.0%." Stocks were supported by President Trump's statement that he will unveil a "big announcement" on tax reform Wednesday.

Dec 10-year T-note prices (ZNZ17 -0.38%) this morning are down -15.5 ticks at a 2-1/2 month nearest-futures low. Tuesday's closes: TYZ7 -2.00, FVZ7 -1.50. Dec 10-year T-notes on Tuesday closed lower on comments from Fed Chair Yellen who warned that the Fed must avoid "moving too gradually" on raising interest rates. In addition, Atlanta Fed President Bostic said he is "pretty comfortable" with Dec Fed rate hike.

The dollar index (DXY00 +0.51%) this morning is up +0.392 (+0.42%) at a 1-month high. EUR/USD (^EURUSD) is down -0.0048 (-0.41%) at a 5-week low and USD/JPY (^USDJPY) is up +0.68 (+0.61%) at a 2-1/4 month high. Tuesday's closes: Dollar Index +0.318 (+0.34), EUR/USD -0.0055 (-0.46%), USD/JPY +0.51 (+0.46%). The dollar index on Tuesday climbed to a 3-week high and closed higher on hawkish comments from Fed Chair Yellen who warned that the Fed should be "wary of moving too gradually" on raising interest rates. There was also weakness in EUR/USD which tumbled to a 1-month low on concern German Chancellor Merkel may have a tough time forming a coalition government after Sunday's weaker-than-expected showing for her CDU party in the German elections.

Nov crude oil (CLX17 +0.13%) this morning is up +2 cents (+0.04%) and Nov gasoline (RBX17 -0.93%) is -0.0190 (-1.15%). Tuesday's closes: Nov WTI crude -0.34 (-0.65%), Nov gasoline -0.0183 (-1.10%). Nov crude oil and gasoline on Tuesday closed lower on the rally in the dollar index to a 3-week high and on expectations for Wednesday's EIA crude inventories to climb +2.5 million bbl, their fourth straight increase.

Metals prices this morning are mixed with Dec gold (GCZ17 -0.68%) -9.1 (-0.70%) at a 1-month low, Dec silver (SIZ17+0.01%) -0.008 (-0.05%) at a 1-month low and Dec copper (HGZ17 +0.82%) +0.029 (+0.99%). Tuesday's closes: Dec gold -9.8 (-0.75%), Dec silver -0.264 (-1.54%), Dec copper -0.0185 (-0.63%). Metals on Tuesday closed lower on the rally in the dollar index to a 3-week high, hawkish comments from Fed Chair Yellen that signal a Fed rate hike in Dec, and the unexpected decline in U.S. Aug new home sales to an 8-month low that was negative for copper demand.

GLOBAL EVENT CALENDAR09/27/2017

		Wednesday, Sep 27
US	0700 ET	Weekly MBA mortgage applications, previous -9.7% with purchase sub-index -10.8% and refi sub-index -8.5%.
	0830 ET	Aug durable goods orders expected +1.0% and +0.3% ex-transportation, Jul -6.8% and +0.6 ex-transportation. Aug capital goods new orders ex aircraft & parts expected +0.3%, Jul +1.0%.
	1000 ET	Aug pending home sales expected -0.5%, Jul -0.8% m/m and -0.5% y/y.
	1030 ET	EIA weekly Petroleum Status Report.
	1130 ET	Treasury auctions $13 billion 2-year floating rate notes.
	1300 ET	Treasury auctions $34 billion 5-year T-notes.
	1330 ET	St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at Truman State University in Kirksville, MO.
	1900 ET	Boston Fed President Eric Rosengren (non-voter) speaks to eh Money Marketeers of NYU.
		Thursday, Sep 28
US	0830 ET	Weekly initial unemployment claims expected +11,000 to 270,000, previous -23,000 to 259,000. Weekly continuing claims expected +13,000 to 1.993 million, previous +44,000 to 1.980 million.
	0830 ET	Revised Q2 GDP expected +unrevised at 3.0% (q/q annualized). Q2 personal consumption expected unrevised at +3.3%. Q2 GDP price index expected unrevised at +1.0%. Q2 core PCE deflator expected unrevised at +0.9% q/q.
	0830 ET	Aug wholesale inventories expected +0.4%, Jul +0.6% m/m.
	0830 ET	USDA weekly Export Sales.
	0945 ET	Kansas City Fed President Esther George (non-voter) speaks on the U.S. economy and monetary policy at a forum hosted by the Kansas City Fed.
	1000 ET	Fed Vice Chair Stanley Fischer speaks at the BOE Independence Conference in London on Developments in Central Banking.
	1100 ET	Sep Kansas City Fed manufacturing activity expected -2 to 14, Aug +6 to 16.
	1300 ET	Treasury auctions $28 billion of 7-year T-notes.
	1330 ET	Atlanta Fed President Raphael Bostic (non-voter) speaks on a Webcast about careers leveraging economics.
	1500 ET	USDA Q3 Hogs & Pigs Inventory.

U.S. STOCK CALENDAR09/27/2017

Name	Ticker	Time	Description	Period	Estimate
Palo Alto Networks Inc	PANW US	08:30	Investor Day
Flowserve Corp	FLS US	08:30	Financial Community Meeting
Spirit AeroSystems Holdings Inc	SPR US	09:00	Investor Conference
Praxair Inc	PX US	10:00	Extraordinary Shareholders Meeting - M&A Vote
Delphi Automotive PLC	DLPH US	10:00	Investor Meeting
Schlumberger Ltd	SLB US		Goldman Sachs Bus Tour
Schlumberger Ltd	SLB US		Credit Suisse Investor Dinner
Black Knight Financial Services Inc	BKFS US		Extraordinary Shareholders Meeting - M&A Vote
Flowers Foods Inc	FLO US	12:15	Investor Briefing
Applied Materials Inc	AMAT US	13:00	Analyst Day
Thor Industries Inc	THO US	Aft-mkt	Q4 2017 Earnings Release	Q4 17	1.956
Thor Industries Inc	THO US	16:20	Q4 2017 Earnings Call	Q4 17
Jabil Inc	JBL US	16:30	Q4 2017 Earnings Call	Q4 17
Jabil Inc	JBL US	16:30	Q4 2017 Earnings Release	Q4 17	0.613

Kemet - Chart of the Day

Kemet (KEM) is the Barchart Chart of the Day.  The capacitor manufacturer has a Trend Spotter buy signal, a Weighted Alpha of 363.08+ and gained 420.65% in the last year.

The Chart of the Day belongs Kemet (KEM).  I found the capacitor manufacturer by using Barchart to sort the Russell 3000 Index stocks first by the highest Weighted Alpha, then again for technical buy signals of 80% or more.  Since the Trend Spotter signaled a buy in 7/11 the stock gained 20.45%.

Kemet Corporation and its subsidiaries is the world's largest manufacturer of solid tantalum capacitors and and one of the world's largest manufacturer of multilayer ceramic capacitors. According to industry sources, tantalum and ceramic capacitors are the two fastest growing sectors of the United States capacitor industry. Capacitors are electronic components that store, filter and regulate electrical energy and current flow and are one of the essential passive components used on circuit boards.

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:

• 80% technical buy signals
• Trend Spotter by signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 39.20% in the last month
• Relative Strength Index 67.21%
• Technical support level at 16.44
• Recently traded at 17.61 with a 50 day moving average of 14.72

Fundamental factors:

• Market Cap $802 million
• P/E 25.71
• Revenue expected to grow 53.30% this year and another 3.30% next year
• Earnings estimated to increase 265.10% this year, an additional 4.50% next year and continue to compound at an annual rate of 12.00% for the next 5 years
• Wall Street analysts issued 1 strong buy and 1 hold recommendation on the stock