Klein Market Summary-March 18th, 2013

Klein Market Summary

March 18th, 2013

Current Market Facts:

Technical Status

 Confirmed Rally Beginning Week 12
   

Other Observations

Distribution is increasing at recent highs

Leading stocks remain robust

   

Feel of the Market

Leading stocks are extended at this point, some 8 week hold rules are expiring
   

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3213

3249

3300

Nasdaq 100

2783

2799

2800/2878

S&P 500

1530

1571

1575

 DJIA

14000

14514

15000

 Market Interpretation:

Friday’s option expiration catalyzed a Distribution Day.  All indications are for a lower open this morning.  Another short-term correction, like the one at the end of February might be constructive, at this point.  Still, the Cyprus bank levy, which is apparently the catalyst for the global sell-off, would seem to be somewhat small, even if it is extreme.

Observing leading stocks when the market is under Distribution is a powerful way to observe which leaders remain highly in demand.  In periods of potential trend change, rules are of the utmost importance.

Joel’s Take:

In the first quarter, many stocks have offered opportunity for solid profits.  Financials, consumer technology, medical, construction, and commodity stocks have all contributed to market leadership.  If the current uptrend continues, then the action that we are seeing right now could manifest as a sector rotation out of some leading groups into new ones.

  • 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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