We all know that futures mean squat but the heavy heavy volume capitulation we saw on Friday was very encouraging.  And I think energy may have bottomed as we saw Aubrey McClendon get margined out completely.

I'm going to be buying some Ultra Shares (not the UltraShort) such as QLD, DIG, UYM and UYG most likely.  The worst bear markets also have the meanest rallies.

We need huge volume at the open in order let the profit takers get out and for the shorts to get squeezed.

Buying up worthless mortgage paper (dud).  Fed buying corporate paper (dud).  All central banks cutting interest rates (dud).  Central banks flooding banks with capital (dud).  US Treasury buying stock in banks (bingo!). 

All rallies will be short lived in this market...I am 100% long right now but will be looking to buy puts on retailers and travel/real estate stocks after we get the mean bounce and take profits on long positions.  Those idiot "early sector rotation" peopel will once again feast on retail stocks, overshoot on bank stocks and homebuilders.  They did that in January, May, July and September and got crushed each and every time.  They are going to get busted out again, so take advantage of it.  This is going to be an awful holiday season for retailers...investors need to face the music.   

Closed-End Funds trading at big discounts, Ultra Proshares to take advantage of the mean reversals in the UltraShort shares, and just tagging along in index ETFs would work just fine. 

This is options ex...there are zillions of dollars in in the money puts...I think there will be a concerted effort to squeeze as much of them out this week.