There are reasons to be cautious, but the market really feels like it is trying to start the process of hammering out a short to intermediate term bottom. That does not mean we can't go lower, and I still have the 570 area as the S&P as a viable target.
Nonetheless...
I have a long FAS position I bought Friday that I will hold as a call option of sorts without expiration. The size is not large, so I can stand to lose it all, but I do not expect that at all. If the major players in the Dow Financial Index went bankrupt, they would just be replaced (and the index could even rise from that, potentially).
At any rate, that is a speculative play that I am not worried about. I continue to focus on SRS trades (I shorted it Friday for a daytrade and shorted the open this morning for a daytrade as well).
Lastly, I'd like a bottom to form because I would like to start trading individual stocks again. However, I can't complain too much with leveraged ETFs available.
Below is my updated S&P market geometry chart.
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