Gold, silver, and crude, along with a few select currencies, seem to be the best alternatives to owning stocks right now. Beyond these areas there is very little setting up on the long side.

Looking at the chart above, notice that the Dollar Index is breaking down from a tight wedging pattern. If the dollar resumes its downtrend in earnest, we could see a strong rally emerge in gold and silver similar to the run up from January to March of this year.

Look for select currencies with strong technical setups to also benefit from a declining U.S. dollar. CurrencyShares Euro (FXE) is worth monitoring for a pullback entry, after reclaiming the 50-day MA and breaking the downtrend line in late June. This is an not an "official" setup, but something to keep an eye on to establish a long entry on a pullback to the uptrend line. CurrencyShares Japanese Yen (FXY) recently broke the downtrend line and is also buyable for a longer term hold on a pullback to 93.25, or on a breakout entry above the recent swing high of 94.78.

With the market at deeply oversold levels the risk/reward ratios do not favor establishing new short positions. That being said, oversold conditions can remain that way for longer than one might expect. Capital preservation is key in this highly volatile environment, so there's absolutely nothing wrong with sitting on the sidelines, preserving cash for the next low-risk opportunity that comes along. As always, remember to trade what you see, not what you think!