Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT

Good morning,

No Long-term Sideways Channel floor TTT on Tuesday. We suckered for a "bobbing cork" trap
instead, as Price Action fairly leaped to cover a 30-point-range day session.

Neat maneuver! April fools!!!

What now?

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 April 01, 2008

. . . [SNIP] . . .

2 = Those who held tight (Bear Volume was relatively low and the dip short-lived), moved the profit-locking stop under the
MA at this failed test, and then added contracts as Price Action crossed the R3, with a 2-candle 123. Others, who got taken
out on = B, spotted the surge in Bull Volume (middle chart) and obvious Bull trend and entered above R3, = C.

NOTE: The strength of the trend overrides our natural hesitation to enter beyond the
extreme R3, but we of course commit to aggressive stop rule application, starting with
advancing the initial stop under R3.

D = Large white candle through the Historical S/R (Daily, bottom right chart, green line). Briskly move Profit-locking stop
under the R3.

E = Our position is in violation of the Maximum Profit Giveback rules. Volume is still strong, so let's stretch it and call this
white candle "large" and move the profit-locking stop under the low of the candle.

F = Failed test of MA. Per our rules, move the profit-locking stop under the MA.

G = Large white candle.

NOTE: Don't be fooled by the small looking candles; it's an illusion caused by the large
range shown on the tape due to the giant opening gap and continuing up trend. In fact,
with ABS being so large, we should have expanded the Profit Giveback and stop spacing
rules a bit by now.

Move profit-locking stop under the low of the candle.

H = Large white candle. PMT stop rules again advise us to move the profit-locking stop under the low of the candle, or
place mental stop at Giveback, depending how you read it.

J = Failed test of MA. Move profit-locking stop under the MA.

K = Large inverted (Bear) white Dragonfly. Not a very good sign. Per our rules, move profit-locking stop under the low of
the candle.

L = DVS (middle chart) seconds the warning of Momentum exhaustion. Nervously call this a large white candle and
moving the profit-locking stop under the low.

M = Notice that the tape displays a larger, third sign of Momentum exhaustion - every other candle is a Doji. The next,
large, red candle took us out at our stop and completed a mid-air Doji Sandwich. +/- 12 points

. . . [SNIP] . . .

PERSPECTIVE
(Daily, bottom right chart)
Seems that instead of the expected Bear TTT attempt at the LT SW Channel floor,
we just witnessed a classic "bobbing cork" trap. BBs, disguised as Bears, first
pushed the "cork" under the water. Then, suddenly on Tuesday, they let go.
The "cork" spurted effortlessly out of the water (above the green line (Historical
S/R). The bobbing cork jumped, covered quite a large range with only moderate
Volume traded. Nice move for April 1st. Fooled me!

REMEMBER: Trade the Tape, Not my Prognostics!

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

Tuesday's PMT Chart: