I probably went a little overboard last night, but I am cool with that. I was frustrated that I wasn't able to act and participate on a day like yesterday. However, maybe that wasn't such a bad thing.

It is expiration week, and we are in the heat of earnings season. I warned in my video this weekend that this week was going to be extraordinary volatile, and that is exactly what we've seen. I mentioned that I wanted to see a closing price on or near 1225 which we got on Monday (1214). The next big question is does this rally fade, or does it stick? There are a handful of things I noticed yesterday that looked like it might be a multi-day event.

An absurd amount of volume flooded the financials yesterday, who were in dire need of a bounce. In fact, a good friend of mine bought ZION on Monday, despite my begging of him not to. He mentioned that he was "investing" and gave his reasoning behind buying into a bank that will survive this mess, and that has limited exposure to the loans that are coming back default. I don't own any banks, and can't see that yesterdays price and volume action creates any sort of trend. However, I can see the reasoning, and will be watching dips in stocks that will survive like WFC and USB.

I have also been quietly watching the homies and the refiners as they approached support. Both groups fell into some buying, and also saw some decent volume. I am watching RYL and VLO (remember my VLO trade from May? I was a month early).

No doubt this rally has been over the fact that crude has been selling off. What is interesting is that crude actually generated a sell signal yesterday via point and figure chart. Not looking to sell crude, but I still think that one of the best trades is taking advantage of the tops in energy stocks.