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.
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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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