Klein Market Summary-March 11th, 2013

Klein Market Summary

March 11th, 2013

 

Current Market Facts:

Technical Status

 Confirmed Rally Beginning Week 11

Other Observations

Market continues to trend higherMarket volume is indeterminate

Feel of the Market

Many leading stocks continue trending higher as the indices close at highs

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3213

3244

3300

Nasdaq 100

2800

2804

2878

S&P 500

1530

1551

1575

 DJIA

14000

14397

14400

Market Interpretation:

So far, the NASDAQ indices have lagged in the 2013 rally, due largely to the breakdown of its heavyweight, AAPL.  While the NASDAQ may have had a Follow-Through Day on March 5th, the leading S&P 500 did not.  It had light volume.   Since then, the markets have held up, but Accumulation days would be welcome.  High volume action in the next few sessions may be telling.

Leading stocks remain robust, with leadership coming from most sectors.  Housing, consumer technology, financial, and medical groups continue to lead.  Some stocks have hold rules in effect, forcing disciplined investors to hold them for several more weeks, in some cases.  Others like V and MA have built solid bases, and could break out at any time.

Joel’s Take:

As the rally continues, we are upon a period where it might typically become more obvious.  This can manifest itself with additional market pullbacks, such as the one that occurred at the end of February, or increased volatility in leading stocks.  Rules-based discipline should keep you on track, but it is important not to chase stocks outside of normal buy areas, and to stagger buying over several days.  Short-term market pullbacks are healthy for a major uptrend, and good for us, if we don’t get shaken out of leading stocks improperly and if we find sound opportunities to buy new leading 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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