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

Good morning,

Good morning and a good week,

Friday's trading resumed the intraday pattern that we have noticed so often:
Trading swings, full of traps, but overall, Price Action
trends sideways until the late afternoon. The BBs then
either plunge or soar vigorously within the wide, LT SW
Channel, for a large-range move to pay for their day.
The Bulls are in a corner, with tight-Resistance both
above and below.

The market continues to hover at a potentially significant precipice.
A Red Flag warning is in effect.

[SNIP]

Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Friday Dec 05, 2008

Morning session opens gap-down, outside the LT SW Channel.

[SNIP]

NOTE: While the BBs stay our drinking TGIF lunch and scheming, PMT Readers
of the Tape receive several Bull TELLs (blue arrows, = F). This is in keeping
with the recurring pattern we mentioned in the opening letter:
Trading swings, full of traps, but overall, Price Action trends
sideways until the late afternoon. The BBs then either plunge
or soar (TELLS say it's a soar today) vigorously within the wide,
LT SW Channel (i.e. Today, it must be a Bull move, which matches
our TELLS, BTW), for a large-range move to pay for their day.

3 = At first thought this was the main move, but it turned out to be more useful as a TELL. 2-candle 123 "S"
continuation on high Volume (pink arrow). Aggressive entry technique is appropriate (otherwise, no entry so
close to the Close).

G = Twin Towers generates a white, inverted (Bear) Dragonfly tap on the Close. Expecting a Pivot test, we
were unprepared for a Pivot Scalp exit at the Close. Move the profit-locking stop under the low of the candle.
Recovering quickly, exit as soon as the following Doji spikes through the Close and retracts back below.
+/- 6.25 points

4 = Although this is a clear Reversal signal:

* We are hesitant to enter off the Close without serious confirmation.

* The plum line closes the Price Window completely.
Entry must be soon, and under the plum line.

The move, of course, does not prove because (the BBs have already leaked outTELLs) that the BBs have a real Bull
move planned.

[SNIP]

5 = Yes! There it is, a 2-candle 123 of the Pivot. Volume is stong (pink arrow), so the large white candle
through the Mid pulls us in with an aggressive entry. Initial stop advances under the Mid, "free trade" plus.

H = Giant DVS (pink arrow) warning of potential exhaustion and a Pivot retest, generates a huge white candle.
Our position is in violation of the Pivot Magic Trading Maximum Profit Giveback rules. Mental stop at Giveback
level.

As the next candle retraces 2.5-3 points, Exit Now! (no point hanging to give back the full Giveback amount).
+/- 10 points

[SNIP]

Price Action continues to climb, through the R1, to test the LT Trend Channel ceiling (green line, Daily, bottom
chart), and settles EOD atop the R1.

PERSPECTIVE
(Daily, bottom chart)
As expected the BBs prefer Price Action toward the center of the Channel.
With the LT Trend Channel ceiling (green channel lines) Resistance definitely
blocking the way, the Bulls are in for a real battle again on Monday.

REMEMBER: Trade the tape, not my prognosis!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Friday's PMT Chart: