The moves in the currencies have been as larger ... actually larger ... than that in stocks given the percentages and leverages in the Forex and futures markets. This volatility can be exploited in the ETF arena and the Japanese Yen appears to be setting up such a trade now. 

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We have a huge price spread without volume to confirm it and that suggests that we will retrace fairly soon off this push. Usually you get at least 2 to 3 days push higher off of a downdraft that was this extensive and severe, and with the way this is shaping up today, that's probably all we can expect off the first bounce here it appears. What discourages me is that we are not seeing any significant volume coming in to support the move.

Just working their way higher. After the beating this market has taken over the past 4 weeks, this kind of lift is not at all unexpected ... once it begins. You can't get blood out of a turnip nor can you take stocks to zero ... at least not collectively.

The rally hats are out as the push to reclaim some of the losses is unleashed. Too early to do any shorting. Too late to chase the thing higher unless you are are sipping and flipping.

The news everywhere is about money being pushed into banks and the markets and guarantees being extended for most any and everything. All around the globe we are seeing the same story everywhere ... push more money into the financial systems and guarantee everyone that everything is fine.

It always amazes me at how governments respond to the undoing of their own creations. The fragility of a system so complex with its inherent flaws is a sight to behold and its unraveling is as unnerving as it is impressive.

This weekend I spent a great deal of time trying to track down stocks and sectors where forced selling was necessarily going on and if that selling was likely done.

Here's some ideas for some bounce trades in both a sector and some individual stocks where this has occurred.

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It would be easy to hang your head here and decide that it just doesn't matter with respect to this market, but that would be a fools game. It does matter. It's your money and your future. Markets either:

1. go up
2. go down
3. go sideways

This market has been going down and going down big. When the going down exhaust itself, there will be a vacuum run back the other way. The harmonics of the market required it as the reverberation lower results in a large sine wave type motion back the other wave.

Here's a chart of the huge percentage rallies that occurred during the Great Depression (courtesy of Alpha Trends)