Market Direction Week of October 7, 2012

Market Direction:  BULLISH                   alert issued 08/09/2012

This past week was extremely bullish at the onset with the SP 500 demonstrating four consecutive days of gains prior to pulling back on Friday. Additionally on Friday, the Nasdaq finished down primarily due to Apple, which was down over 2 percent. The Dow finished up, but well of the highs for the day. The market generally showed increasing weakness going into the close. It is postulated that the selling was due to traders not wanting to hold positions going into the weekend coming off such a choppy day with concerns about Europe and Spain looming as well as earnings season beginning next week.

We have been advising bloggers/followers over the past 3 weeks to play stops close and to consider taking some money off the table. We still suggest hyper vigilance considering current market conditions. Our market assessment is that market internals are demonstrating some weakness. However, we are still teetering and we could potentially continue higher from here. We still maintain a bullish posture, but will issue an ALERT in the event a change in posture occurs. Please monitor $tockMarketDirection daily for ALERTS.

Economic reports this week include: initial claims (10/11) and PPI (10/12).

$tockMarketDirection maintains a Bullish Posture. We encourage followers to monitor positions closely, exercise proper money management strategies and to monitor $tockMarketDirection for ALERTS that we may issue advising of a change in our current bullish posture. Cha-ching.