The SmallCapInvestor.com Top 25 Composite is a computer-generated ranking of the leading stocks in the small cap universe. Rankings are based on a stocks fundamentals, projected growth rates, institutional sponsorship, and technical trend lines. This composite is comprised of stocks that are showing an increasing relative strength to the Russell 2000. As a result, this index should outperform the Russell over long periods of time. A company's inclusion in the ranking should not be viewed as a recommendation.

Decliners led advancers 18:7.

Stocks showing leadership

- ZN
- VNR
- RAX
- SNDA

The SmallCapInvestor.com Top 25 Composite lost about 3.5% over the past week. Despite the losses last week, the composite beat the Russell 2000 which lost 5% last week. Decliners led advancers 18 to 7 in the SmallCapInvestor.com Top 25 last week suggesting a fight between the bears and bulls in the markets. We did manage to capture a few nice gainers despite the volatility in the stock market. Leading the list last week was Zion Oil (AMEX:ZN) and Rackspace (NYSE:RAX) up 17.2% and 8% for the week.

This week we are continuing to be under weight gold and over weight oil and technology. We are avoiding financial related stocks. Last week we expected massive volatility with a chance of testing the November lows of 2008. We broke those lows and we are in free fall mode. This week the markets should stabilize and rally later in the week.

Here are the top 25 stocks for the week of March 2, 2009...

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