Klein Market Summary-August 5th, 2013

Klein Market Summary

August 5th, 2013

Current Market Facts:

Technical Status

 Confirmed Rally – Beginning Week 5

Other Observations

Robust accumulation persists

Indices are trending solidly into new high ground

Earnings-driven breakouts are in full force

Feel of the Market

The focus remains on earnings results

Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3625

3690

3700

Nasdaq 100

3091

3144

3200

S&P 500

1700

1710

1750

 DJIA

15600

15658

16000

 

Market Interpretation:

The NASDAQ indices led the market higher Thursday and Friday.  The breadth of uptrending stocks has expanded continuously since the rally resumed.  Also, the mix of stocks has become much more growth oriented, than in the first quarter of this year, which included many liquid stocks with laggard fundamentals.

The resistance levels mentioned in the above table are all psychological numbers.  Because the indices are in new high ground, or at least decade highs for the NASDAQ, there are no technical resistance levels based on previous price action.

Leading stocks, groups, and the major indices are confirming that the market remains under powerful, consistent accumulation.  This rally seems to be  exhibiting more demand than most of the rallies in recent memory.  This level of market strength seems quite remarkable, given the mediocre level of economic growth.   The market continues to react to Fed policy which is predicated on a not too strong, not too weak economic scenario.

Joel’s Take:

The uptrend persists, in earnest, with expanding leadership.  Earnings reports will continue to offer additional opportunities in the coming week.  As some leading stocks are just breaking out and others seem to levitate, it is important to remain disciplined.  It is critical to remain aware of your market exposure, and to maintain relatively low cost bases.

The market is probably entering a phase of the cycle where the rally has become obvious to institutional investors.  When outcomes seem obvious in the market, there can be more shakeouts, pullbacks, and pivot point undercuts.  However, we might still expect the uptrend to remain robust.  So far, Accumulation has driven the markets higher, and Distribution has only caused the rally to briefly pause.  This market remains ripe with opportunity.

  • 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.

 

Advertisements

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: