Klein Market Summary-March 4th, 2013

Klein Market Summary

March 4th, 2013


Current Market Facts:

Technical Status

 Confirmed Rally Beginning Week 10

Other Observations

Volatility was limited as sequester occurred

Many leading stocks trend higher, while others consolidate


Feel of the Market

Distribution is elevated, but not yet sufficient to conclude a market top

Important Levels on Key Indices:



Last Close






Nasdaq 100




S&P 500









Market Interpretation:

As the dreaded sequester finally came to fruition on Friday, the markets remained stable overall.  The indices gapped down on Friday, but quickly reversed higher.  Some leading stocks quickly moved into new high ground.  The market should still be considered to be in an uptrend.  However, there is an elevated level of market Distribution.  More Distribution in coming days would be enough to conclude that the market has had a change of trend.

In the next session or two, there may a good feel for the level of importance that the sequester will have.  Some feel that the Sequester is irrelevant.  Others, like the CBO, are suggesting that hundreds of thousands of jobs will be cut.  With all of the political spin regarding the possible and necessary effects of the cuts, the market is the best mechanism for determining the real impact.

Joel’s Take:

The focus continues to be on market action and Distribution.  Though the indices are pausing, it is not clear whether the major trend has changed or not.  Though some of the lower quality stocks have broken down, and others are basing, some of the best stocks continue to trend higher.   Leaders, at this point, continue to signal a market uptrend.  Even so, exposure should be reduced in response to market Distribution.

  • 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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