Klein Market Summary-December 31st, 2012

Klein Market Summary

December 31st, 2012

Current Market Facts:

Technical Status  Market in Correction – Beginning Week 13

Other Observations

The market continues to move sidewaysMarket swings based on intraday fiscal rumors, not outlook

Feel of the Market

Late stage Bull Market

Important Levels on Key Indices:



Last Close






Nasdaq 100




S&P 500








Market Interpretation:

Whether you think the market is in a confirmed rally or not, there has been little opportunity to profit in recent months.  As the country is poised to fall off of the fiscal cliff, the market continues to trade in a narrow range.  While the fiscal cliff is perceived as a binary event – resolving it is positive, not resolving it is negative – the reality is probably somewhere in the middle.  There will be some compromise going forward.  As is often said of politics, the best negotiation is when both sides are unhappy.

Joel’s Take:

Today brings 2012 to an end.  It has been a particularly difficult year in the market.   We have seen leading growth stocks top, several false positive market signals, and very little upside potential.  The election kept Executive and Legislative leaders in their same roles.

2013 brings the possibility of recession, according to the CBO, a Bear Market according to many money managers, and elevated taxes and unemployment according to just about everybody.  It promises to be a challenging investment environment – opportunity mixed with difficulty.  The Fed is likely to be continue doing everything in its power to make up for a lack of fiscal policy, including a budget.  I want to thank you for reading this year, and to wish you a Happy 2013.

  • The Klein Market Summary is a professional interpretation of the general stock market conditions that is updated on a weekly basis.  Joel T. Klein is the portfolio manager of the investment partnership Blue Diamond Capital, LP. He writes the summary using select technical and fundamental data.  The Klein Market Summary is not intended to provide investment advice of any kind, and is only provided for the entertainment of the reader.  It is typically updated Monday morning, weekly.  Please e-mail info@kleinasset.com, if you are interested in receiving this free weekly update.
  • Past performance is not a guarantee of future results.  Due to market volatility, a fund’s performance may fluctuate.  Current performance may be less than previous results.  An investment a hedge fund when redeemed, may be worth more or less than the original cost.  Information above is not a replacement for the Fund’s prospectus.  This webpage does not constitute any kind of offer or solicitation.  Additional information on investment objectives and policies is in the Fund’s prospectus.  Ask your representative for a prospectus.

About kleinmarketforum

Klein Asset Management, LLC, formed in 2003, serves individual investors via a directional growth stock approach. When the market is in an uptrend, the firm seeks to exploit investment opportunities. When the trend is down or neutral, assets are protected. Klein Asset Management undertakes major market research projects. In many cases, these result in improved investment methods, which ultimately improve performance.

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