If the diagnosis that risk is back in favor is correct, the place to be in equities could be the small caps as their higher beta will deliver the most accelerated upside returns.

The correction is doing its work.  The feds tried to stop it with trillions in loans, guarantees, and stimulus spending.  They failed.

As the second day of this shortened trading week, today could be considered "turnaround Tuesday." The stock market indices opened strong and kept running all day.

Download Adrian Manz's Around The Horn Intraday Trading Plan PDF for July 7.

Dave Landry takes a one-minute look at the stock market in his video for July 7.

One of the few remaining charts that has continued to trend higher over the past few months, other than bond ETFs TLT and IEF, is the iPath S&P 500 VIX Mid-Term (VXZ).

The 30-minute chart for the S&P 500 futures reveals the break of the trend line which coincided with the US dollar dropping to the 87 level against the yen this morning.

Governments can't make bad debt go away, so they can't prevent a correction and a de-leveraging.

The stock market indices had an up-day today, but it was disappointing. The session started out with a big gap up.

The SPDR Gold Trust (GLD) is down about 6 percent from its June high at 123.50/52, and down about 2 percent from its violation of key near-term support.