Klein Market Summary-February 4th, 2013

Klein Market Summary

February 4th, 2013

Current Market Facts:

Technical Status Confirmed Rally Beginning Week 6

Other Observations

Indices and broad leadership have trended higher

Feel of the Market

Indices continue to trend into new highs

Important Levels on Key Indices:



Last Close






Nasdaq 100




S&P 500








Market Interpretation:

Many leading stocks have emerged from short digestions as the S&P and DJIA surged to new highs.  As these indices pass key levels, it is important to realize that they are extended and somewhat obvious at this point.  Refiners have surged, as construction and financials generally trended higher.  Tech continued to lag slightly.

Small cap stocks have led throughout January.  Yet, on Friday, liquid stocks such as GOOG and GS broke out to highs.  It would not be unusual to see a rotation into large caps as this rally continues.

Joel’s Take:

In the midst of this powerful uptrend, we continue to ponder whether this should be looked at as a late stage bull market move, or the beginning of a newer trend.

With capital goods and services stocks acting well, and some liquid innovative growth stocks lagging, we might conclude that this is a last hurrah.  Yet, the jury is still out.  With the Fed’s enormous liquidity, and bonds seeming to have topped, as observed by ETFs such as TLT, there is an argument that this cycle might defy normal behavior.  The answer will emerge in coming weeks and months.

  • 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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