Weekly Investment Report

    The best sector is industrial goods.   Industrial goods remain the top scoring sector across our 1500 company universe.  Industrials goods have held the top spot in our sector ranking since October.   Healthcare, services, and consumer goods also score above average.  Financials and technology score in line.  In healthcare focus on large and mid cap.  Buy large and small cap services rather than mid cap services.  Focus on mid and small cap consumer stocks instead of large cap consumer stocks.   Basics and utilities score below average.   Industrial Goods   Over the 3 month period ending November, U.K. industrial production climbed 2.8% year-over-year -- the best rate of growth since May 2011.  Production in both France and Spain grew in November.  Production improved 1.3% in November from October in France and grew a seasonally adjusted, annualized 2.6% in Spain.  In Germany, where production had been sliding, production returned to growth, finishing 3.5% above last year in November.  Despite the rate of change dipping month-over-month in December, the UK's services sector grew in every month during 2013.  On January 7th, the IMF's Christine Lagarde indicated the agency will likely boost global GDP forecasts for 2013.  Currently, expectations call for 2.9% year-over-year growth.  Potential for an improving Europe remains under-modeled in industrials.   In addition to the ongoing strength in aerospace/defense (BA, CW, TDG), machinery (MIDD, ITT) and equipment (LFUS, BDC, SNHY) offer upside.  Residential housing (LEN, NVR) is also re-exerting after consolidating late last year.  Watch for expansion in commercial construction activity to drive results for related machinery, including cranes (TEX, MTW).   Healthcare   Despite fears regarding the implementation of the medical device tax, managers are turning back to appliances, devices, and instruments -- they're among the best scoring early in 2013 (STJ, STJ, BDX).  Increase your exposure to generic drug makers (MYL, ACT) as the breather in the patent cliff last year ends and expiration re-exerts.  High profile drugs, including Lilly's blockbuster Cymbalta and Teva's blockbuster Copaxone, provide an opportunity for upside.   Services   Services strength remains mixed with our best list including truckers, rails, apparel, restaurants, and lodging.  The number of trucking jobs increased 1.8% in December compared to last year as the amount of freight hauled by for-hire truckers climbed 1.2% to a record high in November from October.  The U.S. DOT's Freight Transportation Services index is 22.8% higher than the April 2009 low.  Despite lackluster coal and grain carloads, U.S. rail volume held steady, improving 0.2% from 2012, thanks to record intermodal volume.  Watch for carload pricing power this year, particularly if coal moves higher (thanks in part to easy comparisons) and grain continues higher (thanks to a return of export demand).  Macy's positive 4.3% same-store sales gain in November and December adds some support for apparel and accessories (ANN, KORS) -- however, the industry remains bar-belled.  Occupancy at U.S. hotels increased 4.5%, rates grew 6.5% and RevPAR was up 11.3% year-over-year in the first week of January.   Consumer Goods   Auto parts (BWA, FDML) and textiles (PVH, SKX, COLM, HBI) continue to dominate leadership across consumer goods.  Recovering demand in Europe offers support for parts demand and profit leverage given regional cost cutting over the past three years.  Cotton prices remain favorable for textile profitability as retail inventory turns support unit growth.   Economic Data to Watch this Week:  January 14th January 15th Retail Sales Business Inventories Producer Prices PPI Inflation   Top Scoring Stocks:  LG CAP   1/7/2014 4 Week MA MID CAP   1/9/2014 4 Week MA Symbol Sector SCORE SCORE Symbol Sector SCORE SCORE BEST       BEST       AZO SERVICES 110 110 VRSN TECHNOLOGY 110 108.75 JPM FINANCIALS 110 105 CNO FINANCIALS 105 100 MCHP TECHNOLOGY 110 102.5 HAS CONSUMER GOODS 105 103.75 AGN HEALTHCARE 105 100 HTLD SERVICES 105 100 AMP FINANCIALS 105 107.5 IRF TECHNOLOGY 105 103.75 BA INDUSTRIAL GOODS 105 102.5 OCR SERVICES 105 108.75 CELG HEALTHCARE 105 103.75 PVH CONSUMER GOODS 105 98.75 DIS SERVICES 105 107.5 ACT HEALTHCARE 100 93.75 GLW TECHNOLOGY 105 103.75 DDS SERVICES 100 102.5 MJN CONSUMER GOODS 105 98.75 JKHY TECHNOLOGY 100 93.75 MYL HEALTHCARE 105 103.75 SKX CONSUMER GOODS 100 90 SIAL HEALTHCARE 105 108.75 TSCO SERVICES 100 100 APH TECHNOLOGY 100 102.5 TTC INDUSTRIAL GOODS 100 100 ATVI TECHNOLOGY 100 87.5 ALXN HEALTHCARE 95 97.5 BDX HEALTHCARE 100 96.25 ARRS TECHNOLOGY 95 98.75 CSX SERVICES 100 102.5 BRCD TECHNOLOGY 95 86.25 H SERVICES 100 98.75 BWA CONSUMER GOODS 95 97.5 ITT INDUSTRIAL GOODS 100 100  CAKE SERVICES 95 96.25 KORS SERVICES 100 91.25 CHH SERVICES 95 97.5 MON BASIC MATERIALS 100 98.75 CLB BASIC MATERIALS 95 92.5 NVDA TECHNOLOGY 100 86.25 CMC BASIC MATERIALS 95 96.25 OI CONSUMER GOODS 100 103.75 COLM CONSUMER GOODS 95 95 PRGO HEALTHCARE 100 93.75 CRS BASIC MATERIALS 95 96.25 STJ HEALTHCARE 100 93.75 CSL CONSUMER GOODS 95 97.5 TAP CONSUMER GOODS 100 102.5 CW INDUSTRIAL GOODS 95 98.75 TMO CONGLOMERATES 100 95 ESI SERVICES 95 85 V SERVICES 100 96.25 FDML CONSUMER GOODS 95 90 AAPL TECHNOLOGY 95 96.25 FL SERVICES 95 90 AON FINANCIALS 95 97.5 HBI CONSUMER GOODS 95 88.75 BCR HEALTHCARE 95 92.5 HP BASIC MATERIALS 95 98.75 BEN FINANCIALS 95 93.75 HRL CONSUMER GOODS 95 91.25 CF BASIC MATERIALS 95 97.5 ILMN HEALTHCARE 95 98.75 DG SERVICES 95 96.25  LEN INDUSTRIAL GOODS 95 95 DISH CONSUMER GOODS 95 90 LSI TECHNOLOGY 95 91.25 ESRX SERVICES 95 91.25 MTW INDUSTRIAL GOODS 95 97.5 FLR INDUSTRIAL GOODS 95 93.75 NTES TECHNOLOGY 95 91.25 GS FINANCIALS 95 90 NVR INDUSTRIAL GOODS 95 91.25 JEC SERVICES 95 75 OTEX TECHNOLOGY 95 98.75 LEA CONSUMER GOODS 95 93.75 PII CONSUMER GOODS 95 96.25 LNC FINANCIALS 95 96.25 QLGC TECHNOLOGY 95 77.5 LO CONSUMER GOODS 95 97.5 SF FINANCIALS 95 98.75 MCO FINANCIALS 95 98.75 TDG INDUSTRIAL GOODS 95 95 NOC INDUSTRIAL GOODS 95 93.75 TEX INDUSTRIAL GOODS 95 98.75 NUE BASIC MATERIALS 95 97.5 TPX CONSUMER GOODS 95 93.75 NWL CONSUMER GOODS 95 98.75 TQNT TECHNOLOGY 95 88.75 TROW FINANCIALS 95 92.5 TUP CONSUMER GOODS 95 96.25 VLO BASIC MATERIALS 95 91.25 UHS HEALTHCARE 95 87.5 WCRX HEALTHCARE 95 91.25 WWW CONSUMER GOODS 95 97.5 WY INDUSTRIAL GOODS 95 98.75         X INDUSTRIAL GOODS 95 95         YUM SERVICES 95 75         ZMH HEALTHCARE 95 88.75         SMALL CAP   1/9/2014 4 Week MA ADRS   1/6/2014 4 Week MA Symbol Sector SCORE SCORE Symbol COUNTRY SCORE SCORE BEST       BEST       AGYS SERVICES 105 98.75 INFY India 100 95.00 HGR HEALTHCARE 105 96.25 PSDV United States 100 68.75 AFFX TECHNOLOGY 100 92.5 ARMH United Kingdom 95 93.75 ANN SERVICES 100 85 MPEL Hong Kong 95 86.25 BLDR SERVICES 100 90 NTES China 95 82.50 CCC INDUSTRIAL GOODS 100 96.25 SIG Bermuda 95 93.75 CENX BASIC MATERIALS 100 96.25 BIDU China 90 73.75 CFNL FINANCIALS 100 91.25 BRGYY United Kingdom 90 86.25 DPZ SERVICES 100 97.5 GA China 90 85.00 GBX SERVICES 100 96.25 GENT Italy 90 76.25 HZO SERVICES 100 95 GSOL Bermuda 90 67.50 LFUS INDUSTRIAL GOODS 100 93.75 GMK México 85 77.50 MDSO TECHNOLOGY 100 92.5 HIMX Taiwan 85 70.00 MIDD INDUSTRIAL GOODS 100 96.25 JOBS China 85 88.75 MOH HEALTHCARE 100 75 JST China 85 85.00 OPEN TECHNOLOGY 100 97.5 NJ Japan 85 80.00 SABA TECHNOLOGY 100 93.75 RIO United Kingdom 85 87.50 TRAK TECHNOLOGY 100 93.75 SAP Germany 85 80.00 UHAL SERVICES 100 98.75 SI Germany 85 81.25 WIRE BASIC MATERIALS 100 100 SORL China 85 62.50 WTFC FINANCIALS 100 96.25 SPRD China 85 77.50 ALGN HEALTHCARE 95 85 TRIB Ireland 85 82.50 ANAC HEALTHCARE 95 97.5 VLCCF Bermuda 85 63.75 BCOR TECHNOLOGY 95 97.5 WF Korea 85 70.00 BDC INDUSTRIAL GOODS 95 97.5 ABB Switzerland 80 75.00 BONT SERVICES 95 92.5 BMO Canada 80 70.00 CBRL SERVICES 95 90 CAAS China 80 63.75 COHR TECHNOLOGY 95 90 CPA Panama 80 77.50 CWT UTILITIES 95 86.25 ELN Ireland 80 63.75 DXYN CONSUMER GOODS 95 86.25 HKTV Hong Kong 80 68.75 FFIN FINANCIALS 95 97.5 JRJC China 80 63.75 FINL SERVICES 95 91.25 NTZ Italy 80 63.75 HUBG SERVICES 95 87.5 NVO Denmark 80 80.00 IVAC TECHNOLOGY 95 88.75 RUK United Kingdom 80 75.00 LCAV HEALTHCARE 95 76.25 SID Brazil 80 82.50 NWBI FINANCIALS 95 93.75 SNN United Kingdom 80 82.50 PLXT TECHNOLOGY 95 90 WIT India 80 81.25 PRCP TECHNOLOGY 95 83.75         RAD SERVICES 95 87.5         RGR CONSUMER GOODS 95 87.5         SILC TECHNOLOGY 95 93.75         SNHY INDUSTRIAL GOODS 95 93.75         SSNC TECHNOLOGY 95 93.75         STFC FINANCIALS 95 80