Klein Market Summary-April 8th, 2013

Klein Market Summary

April 8th, 2013

Current Market Facts:

Technical Status

 Rally Beginning Week 15/Possible Correction Week 2
   

Other Observations

Several leading stocks have corrected

Indices are under pressure

 

Feel of the Market

Weak market action has put the rally in question
 

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3200

3203

3270

Nasdaq 100

2744

2772

2829

S&P 500

1532

1553

1575

 DJIA

14383

14565

14684 

Market Interpretation:

In the first week of the second quarter, the indices have pulled back, pulling much of the leadership with it.  The Distributions seen last week clearly represented major institutional selling.  While Friday’s gap down on a mediocre job report could have been disastrous, the indices rallied throughout the day to close down only slightly.  Without that supporting action, the market would have been in a correction.  However, as it is, the indices are still barely in rally mode.

Last week’s action pressured much of the leadership in construction, tech, oil refiners, and financials.  Core leadership remains in consumer electronics retailers, and biotech.

Joel’s Take:

Last week’s action tested many leading stocks for signs of support and accumulation.  Many liquid stocks have closed below the 10 week MA for the first time since their breakouts.  While it is not clear whether the markets will move lower, it seems that they are pausing for the time being.  With the S&P 500 just below its all time high, it makes sense that indices would retrace part of their uptrend here.

Many leading stocks were hit last week amidst the difficult market action.   NFLX, which I discussed last week, was one of those casualties.  Still enough remain to make this market uncertain.  If indices continue to find support at Friday’s level, then the rally is likely to continue.  2300 represents an important level on the NASDAQ Composite, while the 50 Day MA on the S&P 500 at 1532 is also quite important.  If the respective indices remain below these levels for more than a few sessions, then a significant correction is likely to take hold.

  • 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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