Trade Plan

Today the market looks great for a long entry. No, I am not watching the charts upside down. I know the futures are down significantly. Here is why I like the way the market is positioned:

- It has sold off already. If it really turns today it probably is close to the lows.

- If it continues lower, it does not have to go too far to convince me to take my losses. This allows me to enter using a larger position than usual.

- Most of the bulls are probably shaken out or sitting on the sidelines.

For entry levels, I will adapt depending on the open but here are some areas of interest:

> around 1183 - the electronic lows from late last week;

> around 1180 - the overnight lows (until now);

> around 1175 - previous important lows.

I will enter as soon as the market falls into one of these areas.

As for stops, I will take my losses if 1174 is breached decisively but will also do some scale outs above this level if the market looks reluctant to rally.