This wasn't the Monday the politicians were hoping for. After Fridays love fest, reality struck back with a vengeance. Volume was much lower than last week but about equal to early September. We can expect this kind of volatility for a while as long as Congress fights with the Fed, Treasury and the administration over the terms of the so called bail out plan. Last Thursdays low should hold (for now) unless the Democrats tell Paulson to take his plan and shove it. The market couldn't get through that old resistance of 1265, at least not yet. If you want a trade, you could buy a breakout above that level or buy any retest of the lows from last week. Oil had an unusual move related to the October contract expiring. The volume was VERY low. It was a vicious short squeeze. Expect oil to open much lower tomorrow. It is, however, exhibiting bullish tendencies and could retrace most of the decline from $147. Gold is moving as well as traders believe inflation is dead ahead. Both are still in bear market rallies, however, and will remain so until they break their highs from earlier this year. The inflation argument seems very simple when you hear the Gov't is going to bail everyone out with new dollars. It also seemed logical in Japan in the early 90's, until it didn't work. What happened there, and is likely to happen here, is that the banks hoarded the new cash and it never got "in the system" the way their Central Bank thought it would. If commodities break out to a new high, however, something much more sinister will be at hand. Remember to never say never and don't become so stubborn about your position that you can't change and adapt to the market conditions.