May-9 Need to be careful

Several days ago I predicted the correction to 12700 area and now it's almost here due to AIG earning report. My strategy is quite simple:

• Load stocks you like from 12700-12600
• I see a strong support on 12550-12650
  
• Cut your loss when DOW dips below 12500

This strategy allows you load at downside risk of 1.5% on index and around 5% on individual stocks. If the stocks are hit hard this time, I guess government may again try to save the market.