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

Good morning and a good week,

In the PERSPECTIVE section of Friday's PMTJournal we reminded:
". . . don't be surprised if the Bears do make a mad dash for cash,
toward mid-channel, tomorrow or [and] Friday."

We weren't and they did. LOL! More fun and excitement on Monday!

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

CAVEAT
Guard your funds. Although a dangerous time for beginning traders to get wet,
this is an excellent time for paper trading and practice.

E-mini
Friday Dec 19, 2008

1 = Free-swinging Friday Fracas opens with a continuation from Thurdsay/Anomaly signal through the
Pivot/Close easily exiting the "green fog".

A = Pulled in on large red Bear candle. Per our rules, move the stop above the high of the candle.

When the next candle completes a "P" Reversal signal, that's one of our Exit Now! signals.
Pivot retest is coming.
SCRATCH!

2 = A 123 continuation through the Pivot/Close. Volume is supportive.

B = Pulled in on giant white candle. To avoid Pivot Magic Trading (MPG) Maximum Profit Giveback
violation, jump the initial stop to "free trade".

C = Another giant white candle. Position is again in MPG violation. Mental stop at Giveback level.

D = Average sized, inverted (Bear), white Dragonfly (sign of failing Momentum) puts the position in
MPG violation, without meeting any of our criteria for stop movement. Per MPG rules, that is an
Exit Now! +/- 5.75 points

Large mid-air Head-and-Shoulders pattern traces out on the tape and Price Action heads for the Pivot
like gangbusters!

3 = Perfect! A 123 Second Chance to enter the trade signal. Price Action exits the "green fog", and
(in light of the powerful Volume, pink arrow) we permit aggressive entry.

[SNIP]

6 = Pivot retest fails with a 123 "S" signal continuation. This time we remember that it is Full of
Traps Friday and check the Volume, which is still asleep (blue arrow), and we keep our powder dry.

The series of blue arrows appear to point to TELLs. Especially during a late TGIF party, they may tip
off a late afternoon Bear strike.

7 = Full sized "P" Reversal/failed TTT off the Pivot. The Volume is a bit more agitated. Aggressive
entry as the red candle clears the low of the white Bear Dragonfly spike. Again, just my personal
preference (good ole risk-conservative me), but once the candle closes below the MA, advance the stop
to "free trade".

K = The MA contains Price Action, which ultimately breaks south. Per our stop rules, move the
profit-locking stop above the MA.

L = DVS (pink arrow, as we have discussed, well into the move this is a pre-exhaustion sign). Giant
red candle with long bottom wick (a further sign of failing Momentum). Stop at normal placement
leaves the position in MPG violation. Mental stop at Giveback level.

N = DVS (at this stage, we suspect a Twin Towers, stall/sag indicator) drives a large red candle. Per
PMT stop rules, move the profit-locking stop above the high of the candle. Again extended, skidding,
lower wick. Be prepared.

N = A Lower-Low-Turns-White or a White Bull Dragonfly retraces >62% of proceeding red candle? Call it
what you will, both are mid-air Reversals, and both are on our Exit Now! list. +/- 5.75 points

[SNIP]

PERSPECTIVE
(Daily, bottom chart)
Price Action has eased back into the center of the Long-term Sideways Channel
(lavender lines). Will the intraday hover and dive (or the Bull equivalent)
pattern resume as well?

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: