I expect stocks to stage a relatively brief and shallow rebound starting Monday, and then resume their slide. The market is extremely oversold right now, and unless there are forces acting on stocks that are very unusual - such as the liquidation of a major hedge fund or brokerage - there just has to be some sort of bounce in the near term.

Looking out a little farther though, just keep in mind that we find ourselves in a historic period of deleveraging - the likes of which are rarely seen outside of depressions. Banks, brokerages, companies and individuals are in the process of shedding debt and things bought with debt, and the process is just going to take a long time and push stock prices a lot lower.

Our road map for the past few months has been pretty clear: With a global recession brewing and energy prices rising, it simply makes sense to be short industries and sectors dependent on buoyant economic growth and to be long energy producers and service providers.