Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************

PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Monday repeated 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.

Price Action/trading prognosis for Tuesday is therefore:
Hover and dive
Objective: LT SW Channel floor.

The market has plunged over a very significant precipice.
A Red Flag warning remains in effect.

E-mini
Monday Dec 08, 2008

[SNIP]

5 = The MA holds back the first attempt, but as a Double-bottom completes with a large breakaway gap,
we are pulled in above the MA on a large white candle. Initial stop advances under the MA.

J = Large white candle. PMT stop rules say to move the profit-locking stop under the low of the candle.

K = Same as = J, above.

L = Small Doji breather is followed by a DVS-driven (pink arrow) large white candle, slamming into the
lavender line. Our position is in violation of MPG rules. Mental stop at Giveback level.

Next candle is a Higher-High-Turns-Red, a classic PMT Exit Now! signal. +/- 9.50 points

[SNIP]

7 = A 123 continuation, bouncing off the MA and through the lavender line, pulls us in above the lavender line.
Initial stop advances under the low of the inverted white Dragonfly. And then Price Action sags. Of course!

N = We went from prepared to scratch to a sigh of relief as DVS (pink arrow) blasted a large white candle through
the lavender line. Move the profit-locking stop under the lavender line (or perhaps to "free trade" like good
ole risk-conservative me). This is a 2-candle 123, so add contracts.

P = Large white candle puts our position in MPG violation. Mental stop at Giveback level.

Large white Bull Dragonfly (green arrow) puts us in MPG violation once again. Mental stop at Giveback level.

Strangled Price Action (pair of wispy Bull Dragonflies gaining little ground) limplies Momentum is failing.
Think Pivot Scalp Exit techniques.

Q = DVS (pink arrow), and the Bulls stretch to tap on the R2, and to promptly withdraw. Pivot Scalp exit.
+/- 8.50 points

EOD Price Action settles just barely back inside the LT SW Channel, below the lavender line.

PERSPECTIVE
(Daily, bottom right chart)
Large white day candle spikes through the LT SW Channel ceiling, but the ceiling holds strong.
As expected, the BBs prefer that trading remains inside the LT SW Channel. Thus (unless the
Fed springs a surprise), it looks like a Channel floor test is in the offing.

REMEMBER: Trade the tape, not my prognosis!

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

Monday's PMT Chart: