The "bailout" of Greece last week was supposed to put the European mess to rest.  The market soared on the news that Greek bondholders, apparently willingly and happily, took a 50% haircut on their investment, avoiding the CDS nightmare that would rival the Lehman Brothers Bankruptcy in 2008.  But alas the half life of these government coordinated bailouts is only a few days, as the money printing, can kicking, and manipulation  can only prop this broken market so long.

And how about MF?  Perhaps all we need to do is change one letter in that ticker to come up with the next financial stock to go belly up from their European bets?   MS was down close to 10% today and finished down 8%.  I think it obvious who the market is picking for the next shoe to fall.  The only confirmation we need is a press release from Morgan Stanley stating their strength, lack of European exposure, and profitability.   Jon Corize as recently as only a few weeks ago stated his firm was in fine shape.  I recall similar musings from LEHM only days before it faced an untenable funding crisis.

We could be at or near a tipping point for the markets.  I am a big bear, and after such a large drop, its only natural to think the markets will bounce.  As I write futures are up, but Europe has yet to open and this relief bounce in the Euro should be short lived.

For tomorrow we have Ben Bernanke and his team of USD printers announcing their next plan to revitalize the economy.   QE3 is a distinct possibility and the dip buying we saw in October could very well continue into November.  If we've learned anything since 2008 its that Ben Bernanke will print as many USD as it takes to get us out of this mess.  And that means stock have the chance to rally sharply on the Feds comments.  So be nimble tomorrow.

The last day of October ended in a sea of red, as the Eurozone Debt Deal Euphoria faded, and folks started realizing that this deal will not be a long-term solution. Couple that with Japans currency intervention, and you have a recipe for a sell-off. Option Traders can have their most profitable days on down days like these, as the VIX (Volatilty Index) goes up, premiums go up. And if you are on the right side of the trade with PUTS, you have a double whammy of profits.

Stocks to Watch going into Tomorrow:

GMCR - The stock closed at $65.02. Its been a battle of the Bulls and Bears after it broke to the downside from $75. There are Analysts who continue to stand by their $120+ price targets(and pump them on CNBC), and there are others who think this has a ways to go before it hits bottom. One of the most requested stocks to short out their right now. Gravity will do its work here before earnings on the 9th.

VXX - The Stock closed at $40.11. VXX is an ETF that tracks the VIX(volatility) futures.  It Bounced off the lower bollinger band once again, and looks ready to head higher into tomorrows session.

$USD – As a trader, if you are not looking at or watching currencies, you are not going to be as successful as you could be. The USD ramped up hard overnight, as Japan intervened in the currency market to weaken the yen. In the process, the USD jumped almost 400 PIPs against the Yen. If your are not familiar about currencies and PIPs, we will explain at a laster date. Either way, looks like the $USD is set to break its 50 day moving average. Stronger $USD usually equates to weaker equities, so we could see another move to the downside the next few session. Something to keep an eye on for sure.

Have a great Halloween and Good Luck with your trades tomorrow!