Klein Market Summary-September 3rd, 2013

Klein Market Summary

September 3rd, 2013

 Current Market Facts:

Technical Status

 Confirmed Rally – Beginning Week 9

Other Observations

DJIA and S&P continue to correct

Leadership is still resilient

The rally seems likely to continue

Feel of the Market

Syria and tapering have taken center stage

 Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3574

3590

3694

Nasdaq 100

3053

3074

3150

S&P 500

1627

1633

1700

 DJIA

14760

14810

15658

Market Interpretation:

         Last Friday’s sell-off came on lower volume, ending the week near recent lows.  Tuesday’s action showed weakness, as indices dropped on increased volume.  This followed the stalling action seen Monday.  Still, the NASDAQ Composite remains 2% off highs.  Leading stocks have continued to show unrelenting strength.

The fear of U.S. involvement in Syria has created ripple effects throughout the markets.  There is a only small possibility that the crisis will spread into a regional contagion.  However, the market’s pause seems to be pricing in the worst outcome in Syria.  Furthermore, the Fed’s tapering of its Quantitative Easing program is also a widely expected event.  With regards to tapering, the market may be waiting to see if the ending of that program will lead to economic slowing.  This shortened week may be eventful, as these headlines continue to unfold.

Joel’s Take:

The market continues its pause.  On the NASDAQ, it seems to be moving sideways, while the S&P 500 and DJIA are correcting more typically.  As September events unfold, my focus will be on the action of the NASDAQ Composite and the NADSAQ 100, as well as the action of liquid leading stock.  The best stocks have continued to trend higher, defying the possibility of correction, so far.

Housing stocks and biotechs, both leading groups in the first quarter, have faded from the leadership.  However, consumer technology names with stellar earnings growth have taken off.  Lower lows on the market could make me cautious, especially if that was accompanied by high volume price breaks in many leading stocks.

  • 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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