The continued craziness in the market is marked by the extremely wide percentage swings its indices make over a matter of just minutes. Such wide swings have in the past been typical only over the course of an entire year. This type of volatility can certainly exhaust individual investors, and the combination of fear and fatigue often leads to a bottoming process.

Readers know that over the past couple weeks I've been becoming slightly more optimistic regarding the potential for more upside in the market. In my column last week I noted that my indicators didn't quite give off a short-term buy signal, but they were very close.

I reported in my RealMoney.com column this morning that my indicators have turned decisively positive, giving off a short-term buy signal. I recommended taking a small position in the exchange-traded-fund market proxies when they break above Thursday's highs. The key is to kept positions small and have close, protective sell-stops a few percent below Tuesday's lows.

There is also another possible longer-term trend that I see developing in the market that has the potential to be tremendously profitable if played right. With the government's new bailout plan and the billions of dollars of money being printed and pumped into the economy, it's useful to note that the repercussions of such trends throughout history have always resulted in tremendous inflationary pressures.

Of course in the short term, until the money works its way through the economy, the likelihood of deep recession and even deflationary pressures can exist. However, whenever money is being flooded into the system, the end result has been rampant inflation and higher interest rates.

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