Klein Market Summary-September 23rd, 2013

Klein Market Summary

September 23rd, 2013

Current Market Facts:

Technical Status

Confirmed Rally – Beginning Week 12

Other Observations

Indices distribute on Options Friday

Leading stocks continue to surge and break out

Feel of the Market

Fed stands pat, Summers backs away from Chairman position

 Important Levels on Key Indices:

Index

Support

Last Close

Resistance

Nasdaq

3700

3775

3800

Nasdaq 100

3200

3225

3249

S&P 500

1700

1710

1729

 DJIA

15304

15451

15700

 

Market Interpretation:

The markets have trended higher.  The delay of the Fed’s tapering was Bullish for stocks, last week, as many surged higher.  Still, Thursday and Friday’s weakness added some uncertainty to the equation.  Also, weakness in some leaders recently, especially QCOR, KKD, SSYS, and XONE, may add more confusion to market interpretation.

For the best market barometer in the current environment, I rely on the most liquid leading stocks, some of which have top notch earnings growth.  Others, such as BA or HD, are must-own stocks for large institutions because of their fundamental stories.  Of the stocks showing recent weakness, none are institutional favorites.  The core leadership that has dominated throughout the year remains intact.  Though many stocks have built bases in recent months, others have continued to extend.

Joel’s Take:

The market action of Thursday and Friday may carry over into the beginning of this week.  Still, without a high level of Distribution, and corresponding weakness among the market leadership, there may be little reason to sell.  With stocks like YHOO, GOOG, and PCLN firming up, the theme of the leadership is still consumer tech.  Additionally, biotech stocks have broken out in recent weeks.

With leading stocks, FB, LNKD, CELG, GMCR, among many others, seeing PE expansion, we are in a different market than recent market rallies.  This market is seeing PE expansion in leaders, the leadership is driven by innovative growth stocks, and the leadership is seeing broad institutional accumulation.  While the market may see some pullbacks in coming months, there may be little to stop the rally in the near future.  Coming weeks will bring earnings season which is always a mix of opportunities and threats.

  • 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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