• The best large cap sector is industrial goods.
• The top large cap industry is cigarettes.

The average score across our large cap universe is 60.76 and that's above the four week average score of 59.68. The average large cap stock is trading -18.26% below its 52 week high, -2.14% below its 200 dma, has 4.07 days to cover held short, and is expected to grow its EPS by 10.63% next year.

The strongest large cap sectors are industrial goods, consumer goods, services, and financials. Technology scores in line with the average large cap score. Healthcare, utilities, and basics score below average.

The best large cap industry is cigarettes (RAI, MO, PM). Industrial equipment (ROP, EMR, PH, PNR), business services (CSGP, ATHN, V, TSS, CTAS), beverages (TAP, STZ, MNST, KO, FMX, DPS, CCE), and broad-line semiconductor (INTC, MXIM, TXN, FSL) can also be bought.The SEMI book-to-bill historically puts its low of the year in during fall and then builds steadily through the first half of the following year. Similarly, semiconductor returns are best between December and April (see following charts).

The best baskets to buy in basics are major chemicals (DOW, APD, ASH), refiners (TSO, VLO, HES), and ag chemicals (DD, AGU). Cigarettes, beverages, and auto parts (ALV, LEA) are strongest in consumer goods. The top financials groups are REITs (AVB, PSA, PCL, UDR, HCP, HCN, ESS, PLD), P&C insurers (ACE, CINF, CB, TRV), and asset managers (BLK, AMP, TROW). Only medical instruments (BDX, XRAY, SYK, BSX) score above average in healthcare. Buy industrial equipment, aerospace/defense (RTN, NOC, LMT, BA), and diversified machinery (XYL, IR, ITW) in industrials. Business services, air delivery & freight (CHRW, UPS), and railroads (KSU, CSX) are top scoring in services. Broadline semi, application software (RHT, MSFT, CTRX, ADBE), and specialized semiconductor (MCHP, NVDA, XLNX) are the highest scoring technology industries.