Stocks rebounded from seven days of losses on Monday as investors used the latest effort from European leaders to resolve the region's debt crisis as an opportunity to cover short positions.

Trading was light, a sign skepticism remains high. Just 6.8 billion shares changed hands during the day on U.S. exchanges, below the daily average of 8 billion shares.

The Dow Jones industrial average was up 291.23 points, or 2.59 percent, at 11,523.01. The Standard & Poor's 500 Index was up 33.88 points, or 2.92 percent, at 1,192.55. The Nasdaq Composite Index was up 85.83 points, or 3.52 percent, at 2,527.34. (commentary & photo courtesy of Reuters) 

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Today RSI generated two buy signals, which I bought today:

• Buy 1408 shares of PowerShares DB Oil (DBO)
• Buy 238 shares of SPDR Gold Shares (GLD)

As I mentioned in the last blog I have been monitoring gold and energy funds for a resumption of their uptrend. Today these two funds did just that, a break to the upside.

Let’s look at their charts.

Since the slide in crude oil prices this past May, DBO has likewise slid in price until its reversal in early October. It then started a strong uptrend. It dipped recently but then appears to have bounced off its ascending trendline. With today’s acquisition in DBO, we now have our limit of energy positions.

GLD, may also have bounced off its ascending trendline. Remember, that GLD holds the physical gold bullion against its shares.

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Next RSI will be monitoring the unleveraged, short ETFs for pullbacks. Several of the short market funds have climbed too fast. Monitor them for a pullback and retracement. Short funds such as:

• ProShares Short Russell2000 (RWM) 89
• ProShares Short SmallCap600 (SBB) 80
• ProShares Short MSCI Emerging Markets (EUM) 94
• ProShares Short MidCap400 (MYY) 88
• ProShares Short MSCI EAFE (EFZ) 95
• ProShares Short QQQ (PSQ) 77
• ProShares Short Financials (SEF) 94
• Active Bear ETF (HDGE) 95
• ProShares Short High Yield (SJB) 92

Now that Thanksgiving is over, we have the Santa Clause rally to look forward to. If that rally falls short of expectations, look out below.