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

Good morning,

Well, we got what we predicted in Monday's Pivot Magic Trading Journal:
* Most of the day was "hover".
* Late afternoon was "dive".
* Trading closed EOD almost exactly at mid-LT SW Channel.
* Even promised ya lots of fun and excitement on Monday.

Would have rather made money, but at least I was right! LOL!

The market has plunged over a very significant precipice and teetering.
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
Monday Dec 22, 2008

[SNIP]

Price Action now resumes the traditional (of late) hover mode.

D = Extraordinary DVS (pink arrow) generates enough push to penetrate the Historical S/R (Daily, light blue
line, more or less mid-channel of the LT SW Channel, lavender channel lines). Black-Volume-Bar-of-Death,
(DVS!) indicates, however that that all the BBs wanted to accomplish before lunchtime hover-drift resumes
was to get below the light blue line (a TELL for experienced PMT readers of the tape).

Sideways lunchtime drift was far from innocuous. Failed TTT of the S1 led to a corollary TTT attempt at a
TTT of the light blue line (a TELL).

TELLs abound (blue and pink arrows). Note the miniature repeat of = D Volume pattern (pink dashed arrow),
draining off Momentum from the TTT of the lavender line.

E = No choice but down. The Volume reveals one final TELL, as Price Action edges through the S1 Support.

2 = MA Resistance once again determines the northern extreme of trading, forcing a 123 continuation retest
of the S1, Support-turned-Resistance, and, taping a lovely Second Chance to enter the ongoing move signal.
In light of the Volume surge, you may have elected to apply PMT aggressive entry techniques on the large
red breakaway candle. Initial stop advanced above the S1.

F = The rest of us are pulled in by this large red candle (Bull Dragonfly/Spinning top). Either entry, stop
now belongs above the high of this candle.

G = Large red candle. PMT stop placement rules advise us to move the profit-locking stop above the high of
the candle.

H = Bad sign. Late in the move DVS (pink arrow, prelude to exhausted Momentum) generates a large, red,
inverted (Bull) Dragonfly (Long bottom wick/Skid marks are a second warning of failing Momentum). Many of
us exited as the Price Action spiking through the S2 retracts above, or else when >2 points of profits are
taken from us.

Those morals amongst us (with normal reaction times) were taken by surprise by = H, and exit as soon as the
next candle spikes through and retracts above the S2. +/- 6 points

Fool me once, shame on you. Fool me twice, shame on me!

3 = High-power 123 continuation, "S" Signal, blasts through the S2. Entry on the next red candle with initial
stop advancing above the S2.

J = A 123 kickoff (plum arrow, = 3) presents another entry opportunity, or a chance to add contracts for those
who entered on the orange arrow. Large red Bear Dragonfly. Inch the profit-locking stop tighter, above the
high of the candle.

K = Super-DVS (pink arrow) blasts a large red candle through the LowW. Late in the move, and extraordinarily
violent, this must be read as true desperation, having almost certainly exhausted Bear Momentum. Long bottom
wick indicator increases that sinking feeling. Prepare to exit.

The position is thankfully (thankfully, because the mental stop resulting gives us the most speed and
flexibility of execution, not requiring a Cancel-Replace maneuver to implement an emergency exit) in violation
of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level.

When the next candle (white Spinning top) retraces >62% of the red candle, we spot a mid-air Reversal, which
we immediately recognize as one of our PMT Exit Now! signals. One glance at the clock (EOD Hiccup Danger Time),
and we go flat. Got a bit of positive slippage on the exit. +/- 3.50 points

[SNIP]

PERSPECTIVE
(Daily, bottom right chart)
Monday's hover-dive re-run pushed Price Action to mid-LT SW Channel (light blue line).
This level has historically presented a difficult S/R obstacle, so we can expect a
battle at Support. Since the BBs historically like to drive Price up just before a
holiday, which combines smoothly with the troop placement on the tape, we rather expect
a TTT attempt, Bull assault at the LT SW Channel ceiling (lavender channel lines) next.

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: