So far the S&P and the NASDAQ are hanging in there. We want to have a long position by the close if BOTH the indices close higher on the day today. The expectation is that Europe does something to sort itself out tomorrow. If this is the case we will be up and running. The risk in the S&P 500 futures is as stated in the A.M. Look 1315. The NASDAQ stop would be today’s low.

Game plan for ETF Traders…. use the SSO to get long the Spu.. Without confirmation just wait. We’ve already caught this swing several times this year.

Futures Traders…Use an all session stop below today’s lows.

The thinking behind this is simple.

1) This is still below where we got out of our longs the last time up. So it would still be a positive scalp.

2) If something untoward happens you will be out and can then re access the situation with a minimal amount of pain

3) I am willing to give Dr. Nenner’s momentum model a go with a tight stop for two reasons: First: If he’s correct you won’t be able to get in tomorrow at a good level. Second: So many individual names have already had sizable moves that, quite frankly, the whole board seems a better bet than picking the individual instruments that seem massively overbought.

So yes, there is a high degree of risk in this trade at this level. Trade accordingly. Again, Futures traders have the option of waiting out the time frame into London to buy the strength.

Those of you who are Long Canada….This is the same bet..