The market is likely in for some rough trading this week as the bailout package from Congress tests waters with its planned signing.

Media pundits are saying Treasury Secretary Paulson‘s plan could either fix or make the financial crisis worse. Only time will answer.

Follow Through Days (FTDs) on the Dow 30 and S&P 500 are indicating institutional buyers are placing some faith in the market. The Nasdaq and Russell 2K‘s inability to do the same will either prove them as leaders or laggers to what ultimately develops as a trend.

We’re not in the business of making predictions about the stock market. Some people don’t understand that.

We simply take orders from the market. When it’s made clear institutions are buying and Leadership from industry groups emerge, we know it’s time to look for opportunities on the long side.

Conversely, when heavy selling is en vogue, we’re sure not to test the direction the market’s dominant players have set forth.

We take heavy selling in Cyclicals last week as a sign that traditional growth drivers of the economy may not be well bid for the fourth quarter.

On the other side of that was heavy buying in Drugs, a traditionally safer industry in economic downturns. Biotechnology has been holding its relative strength against the broader market, this may be a precursor to opportunities should we rally this fall.

And wouldn’t you know, Homebuilders also finished the week with a gain. The bigger picture for the industry remains negative. But even the Bull get’s a run in beaten down markets sometimes.