Bonds just had the first major reaction after an extended downtrend.  You can see this downtrend by looking at how much time the CCI oscillator spent in the oversold region.  This is the first time that we've gotten back above the overbought level since that run. Usually, this means that there is a decent swing move back to the oversold level to retest that area.  So look to work the short direction by shorting bounces and using appropriate stop levels for your account and risk tolerance.

As far as stocks go, we have to go with the short side.  The overall market broke out of a consolidation area and has been acting weak.  So, we should look at the relative strength laggards and try to short those on rallies.  Some of those are SIRI, IP, FLEX, DELL, GE, CAT, FITB, NOK, MOT, MSO.  Basically, take your list of favorite stocks, throw a 180 period RSI on them and look to short any bounces on the ones with the lowest RSI readings.