Pivot Point Daytrading Course
Learn to Read the Tape
and Exploit Pit Pivot Points

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PIVOT MAGIC JOURNAL - EXCERPT

Good morning and welcome back,

I'm feeling a bit better today, especially after Tuesday's
nearly PMT-perfect afternoon bounce off our R1.

Ready for Wednesday?!?

Be well,

=] ;-)>

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BS"D

Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"

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E-mini
Tuesday January 08, 2008

. . . [SNIP] . . .

4 = Strong 2-bar "P" signal off the R1. Perfect! Entry on the next candle,
with initial stop above R1.

D = Failed test of MA. Move profit-locking stop above the MA (or better yet,
just a drop lower, to "free trade").

E = Large red candle violates the PMT Maximum Profit Giveback rules. Mental
stop at Giveback level.

F = Large red candle through the Close, stops at the Pivot. Per our PMT stop
rules, move profit-locking stop above the Close.

G = Large red candle through the LowW. Our rules advise to move the
profit-locking stop above the LowW.

Note that this is also a 2-candle 123 of the Pivot. With such bloated ABS and
a half hour before EOD Hiccup Danger Time, if still on the sidelines, one might
call this an "S" and enter. Those already happily holding a profitable position,
take this as an opportunity to add contracts.

H = Large red candle spikes through the S1. Per our rules, move profit-locking
stop above the high of the candle.

J = Another 2-candle 123 of one of our Pivot Levels (S1). Bit late in the day to
enter, but a good place to add contracts. Move profit-locking stop above the S1.

K = Single, gigantic, red candle violates the PMT Maximum Profit Giveback rules.
Mental stop at Giveback level.

Uh Oh! Our old friend the "lower-low-turns-white" (blue arrow). That's a classic
Exit Now! scenario. Do it! +/- 26 points

. . . [SNIP] . . .

PERSPECTIVE
(Daily, bottom left chart)
Price Action has reversed to well below the 62% Retracement Level (dark red line).
Trading has not yet reached the old low, but it has plunged a long way from the
Long-term high (blue line).

(Monthly, bottom right chart)
I know some folks are freaking out and calling it a market crash, but let's step
back to a Higher Time frame and get some perspective.

The hand-drawn red bar (right edge of the tape) approximates this month's Price
Action, and the plum line approximates the 50% (Fibonacci) Long-term Retracement
Level.

As you can see from this vantage, although Price Action has stalled, and even
vigorously retraced quite a lot of points, it's still pretty tough to label this
a crash!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com

Tuesday's PMT Chart: