Archive | May 2013

Klein Market Summary-May 27th, 2013

Klein Market Summary

May 27th, 2013

 

Current Market Facts:

Technical Status

 Confirmed Uptrend Beginning Week 5
   

Other Observations

Last Wednesday’s big sell off quickly found support
   

Feel of the Market

Indices continue to show overwhelming signs of accumulation
   

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3400

3459

3500

Nasdaq 100

2965

2991

3000

S&P 500

1600

1650

1700

 DJIA

15000

15303

15500

 

Market Interpretation:

While the major market indices have continued to power into new high ground, leading stocks have continued to work.  Throughout the year, we have seen large cap, liquid stocks drive the rally, with the DJIA driving most of the first quarter rally.  In the past 5 weeks, tech stocks such as GOOG have begun to show leadership.

Biotech has remained a leading group, even through the series of sector rotation that we have seen this year.  We have also seen financials lead.  Many other groups have seen one or two stocks become leaders, as the broad money flow into the market persists.

Joel’s Take:

This broad rally is in full force as leaders continue to trend higher, even despite a market blip, as seen last Wednesday.  While more Distribution at these levels could become problematic, the behavior of leading stocks remains robust, by and large.

  • 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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Klein Market Summary-May 20th, 2013

Klein Market Summary

 May 20th, 2013

Current Market Facts:

Technical Status

 Confirmed Uptrend Beginning Week 4
   

Other Observations

Stocks continue to levitate as leadership and indices remain under robust accumulation
   

Feel of the Market

Leadership is coming from every industry group
   

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3400

3499

3500

Nasdaq 100

3000

3029

3100

S&P 500

1600

1667

1700

 DJIA

15000

15354

15500

 

Market Interpretation:

As indices have trended into highs, resistance levels have less significance.  The levels that I have cited above are psychological levels, which are either round numbers, or percentages of extension above recent levels.  Having broken into new high ground with broad, powerful leadership, the trend seems likely to persist.

Friday’s option expiration, which can bring heightened volatility saw continued strength.  This market environment is showing powerful breadth and strength not seen since the 1990’s.

Joel’s Take:

April brought a violent shakeout to stocks.  We saw levels of Distribution that typically lead to corrections.  Yet, the indices surged off of their 50 Day MA’s into new high ground.  Tech stocks have shown improved strength since that time, with AAPL bouncing off of its lows.  Tech leadership has emerged from several stocks including GOOG, PCLN, MSFT, CSCO, YHOO, and ARMH, among others.

In a market where many stocks are working, the ones with the best fundamentals tend to be the very best.

  • 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.

Klein Market Summary-May 13th, 2013

Klein Market Summary

May 13th, 2013

 Current Market Facts:

Technical Status

 Confirmed Uptrend Beginning Week 3
   

Other Observations

Leadership has surged in recent sessions

Indices have remained under accumulation into new high ground

   

Feel of the Market

Money is broadly flowing into stocks from other asset classes
   

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3400

3437

3500

Nasdaq 100

2937

2981

3000

S&P 500

1600

1634

1700

 DJIA

15000

15118

15500

 Market Interpretation:

The market continues to trend higher.  Broad institutional demand, spurred by global central banks and low bond yields, continues to persist, even after the market has rallied for four months.  The April shakeout, which would normally lead to a correction, has become a distant memory as new leadership expands.

When assessing support and resistance levels, all relevant resistance has been broken as the S&P 500 and the DJIA have surged to all-time highs.  The NASDAQ indices are back at levels seen when the bubble burst in 2000.

Joel’s Take:

The market has continued to trend higher, easily clearing resistance levels.  Breadth among leading stocks has continued to expand.  Many of the stocks that had already been leading in terms of Relative Strength have just achieved earnings growth in their recent earnings reports, such as TSLA and NFLX.

  • 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.

Klein Market Summary-May 6th, 2013

Klein Market Summary

 

May 6th, 2013

 

Current Market Facts:

Technical Status

 Confirmed Uptrend Beginning Week 2
   

Other Observations

Some leading stocks continue to hold up

Indices are back up near highs

   

Feel of the Market

Earnings reports and Fed policy are in focus
   

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3200

3279

3300

Nasdaq 100

2800

2841

2860

S&P 500

1575

1582

1597

 DJIA

14500

14713

14887

Market Interpretation:

Broad accumulation has pushed the market to record highs.  The NASDAQ indices have taken a leadership role, led by AAPL, rebounding off of lows, GOOG, and MSFT.          While leadership continues to come from many different industries, the NASDAQ Comp. has lagged throughout the year, mostly due to AAPL’s downtrend.  It is interesting to note, that while the NASDAQ has led for the last two weeks, volume has come in lighter in the last two trading sessions, as the index broke out in earnest.

The S&P 500 and the DJIA, which have led the market to date, finally broke to new highs on Friday’s jobs report.  This was accompanied by increased volume on the NYSE.  Also of note last week, global central banks continued to enforce an increasingly accomodative policy, which might continue to help the markets to move higher.

Joel’s Take:

Last week, the indices overcame a high level of Distribution to move into new high ground.  This was accompanied by some breakouts, and many moves to new highs among leading stocks.  While this market has been tricky because the broad trend underwent an amount of Distribution that most often leads to a market top, the facts have clearly changed.  Significant exposure should only be taken in this market, after initial positions show gains.

  • 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.