Nov 142010
 

We’re back from Normandy.  We had a great time despite the relentless rain.  For me the highlight of the trip was seeing the cliffs at Etretat.  I’ve seen the famous seascapes in Monet’s paintings and it was a thrill to see them up close in person.  Here is a family shot atop the cliffs.

family etretat sm  Back from Normandy

As for trading..  I took a few minutes to study the daily chart and I see a number of possibilities:

  1. Pullback to 1207 area and then continue down
  2. Pullback to 1207 area and then retest the highs
  3. Continue down to one of the support levels I’ve marked on my chart below

Friday registered as a pro bar.  There has been a lot of responsive buying however buyers haven’t been able to overcome the sellers.

I still have a runner open and I have a target for that set at the next support level which is 1180.  If I had a better entry closer to the top then I’d be much more patient.  However, my entry I consider “poor” because it’s 17 pts off the high and I do not want to sit through any retest of the high.  It’d be better to exit the short and look for a better entry.  And that’s why I’ll look for 80 to get out.  If I see strong buying I’ll be looking to get out as well.

I still think a correction of 60+ pts is possible.  Curtis Faith, one of the legendary turtles, has sounded his alarm.  He’s not saying the market will crash, he’s just saying the risk of a big move down is too great to justify being long.  The S&P 500 has gone up for 10 weeks straight.  If those longs start to panic there could be a stampede for the exits.  So far not only are they not stampeding, they’re not even walking towards the exits.   So the suspense continues.

I hope you had a good weekend and good luck with your trading this coming week.

  4 Responses to “Back from Normandy”

  1. Hey Michael,

    great to see you and your three gorgeous girls! I have been several time in France but never in the Normandie but it will be a destination for the future despite the rain 😉

    Cheers,
    Markus

  2. Normandy is great. Good food and beautiful views. Brittany & Normandy are my favorite regions. Where have you been in France? Did you make it outside of Paris?

  3. We were in the Haute Provence last year and around Alsace. I like France but speak only a little Frensh.

  4. Alsace would be my next favorite. I like the regions that have strong culture & customs, even better if they speak different languages.

 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

(required)

(required)