Overnight futures looked ominous, with the Dow down over 100 points and continuation of Friday's selling spree looking likely to start the week. Some back-pedaling from the Hungarian government and stronger than expected factory orders in Germany hitting the wires in the early hours, however, have turned things around considerably, lifting futures back above fair value -- at least temporarily. The recent action of up big one day, down big the next, has challenged both bulls and bears to stay nimble or stay out until a clear trend can be confirmed. Once again, in this kind of environment it is essential to practice disciplined risk management, protecting capital above all else. Friday's action was extremely negative, and bearish chart patterns are proliferating. However, major support has yet to break, and many stocks and indexes remain short-term oversold. If the market's gyrations are making it hard to adhere to a plan, then wait for confirmation of near-term direction. No need to rush to judgment here -- patience pays.