Klein Market Summary-January 14th, 2013

Klein Market Summary

January 14th, 2013

 Current Market Facts: 

Technical Status  Confirmed Rally Beginning Week 3 

Other Observations

Markets remain under accumulationLeading stocks have continued to surge higher

Feel of the Market

The rally is showing a lot of power led by some first stage leaders

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3061

3126

3200

Nasdaq 100

2713

2748

2785

S&P 500

1448

1472

1474

 DJIA

13365

13488

13650

Market Interpretation:

The indices have trended higher with tight daily closes.  It has been rising on big volume.  Institutions are aggressively accumulating financial, tech, medical and consumer stocks.  The markets are trending to new highs – the NASDAQ Composite is near its best levels since the bubble burst in 2001, and the S&P 500 is approaching its 2007 Bull Market high at 1575.

Global stock markets are rallying.  Some markets have been rising for months; others began recently.  This global trend of money flowing into stocks is positive for the U.S. stock markets.  The global breadth suggests that the market may be more likely to trend for a longer period.

Joel’s Take:

In recent weeks, I was inclined to think that the market would rally after the Bush tax cuts were renewed – regardless of the exact policy decision.  Any outcome was better than the uncertainty.  I had thought that the market would have a quick, short rally, and then roll over.  Without the strength of the 2009 leadership to power it, I imagined that it would have a hard time trending higher for any period of time.

Yet, as I view the action real-time, it seems that there is a much stronger case for a durable rally than I had thought, here.  If new leading first-stage stocks replace old ones that have topped, there may still be sufficient leadership.  A few powerful stocks have surged in the last week.  True leaders always give many chances to get in.  Patience and discipline.

Having core positions in leading stocks is a key to making big money in the stock market.  However, selling true leaders for a 5% or 10% gain will probably not lead to big overall returns. I remember in the mid 1990’s, and again in 2006, people were talking about settling for smaller gains than 20%.  That was just about the time that the big opportunities returned in stocks.

  • 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.
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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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