Klein Market Summary-July 1st, 2013

Klein Market Summary

July 1st, 2013

Current Market Facts:

Technical Status

 Correction Beginning Week 3

Other Observations

Most leaders continue to consolidate soundly

The correction remains well contained so far

Feel of the Market

Fed policy change remains in focus

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3300

3403

3500

Nasdaq 100

2863

2910

2927

S&P 500

1560

1606

1623

 DJIA

14551

14909

15000

 

Market Interpretation:

The S&P 500 found support at 1560, last week.  So far, the indices have corrected 6-7%, which is consistent with a short-term correction.  Also, liquid leaders, such as GOOG and PCLN, have consolidated well, so far, and could emerge from proper structures in the near-term.  This leaves the door open for a continuation of the prior uptrend, though it may be equally likely that the correction deepens.

The second quarter saw a continuation of the first quarter’s uptrend, punctuated by 2 corrections.  While the market has risen steadily due to Fed policy, leading stocks have generally seen more choppy action.

Joel’s Take:

Now is the time to review recent trades, and prepare for the next opportunity.  While Fed policy has been inflating the markets, an end to their quantitative easing programs could ultimately benefit our style of investing, as stocks would rise or fall based on natural supply and demand market forces.  Even so, it is possible that quantitative easing could prove to have helped kickstart the economy from the doldrums.

  • 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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